Tax Return done already!

-1-

Just finished and returned mine online.

It's my first year doing it and i have 1 question.

At the end it said your balancing payment due is £xxx which is paid in 2 installments of £xxx then it says total due is £x,xxx , which broken down it is the same amount and it's 3 x the instalment payment due.

Where does the extra come from ?.

ctm_2

The extra is the payments on account for 2006-07.

For example. Your balancing payment for 2005-06 (the return you have just submitted) is £5000.00. That must be paid by 31 January 2007.

Then 2 payments on account are charged of half that amount each, so both £2500.00. The first is due by 31 January 2007, and the 2nd by 31 July 2007.

Then when you submit your 2006-07 tax return, you have already paid £5000.00 towards your liability for that year. If the liability for that year is less, you will get a refund, if it is more, you will have to pay the extra.

Payments on account can be reduced (ask for a form SA303) to any amount you want, even £0. However, if you reduce them, and your liability at the end of the year is more than what you have reduced the payments on account to, then they will still be charged, with their original due dates, meaning that you will be charged interest.

-1-

Thanks, that makes sense now.

So for the 06/07 return do i just the extra off that years tax due ?.


Also for this year if their due in Jan 2007 and july 2007 can i pay the full amount due now ?

Chi_2

I completed mine yesterday (I know all the figures that will be used as I keep a nice spreadsheet to hold them, and also calculate the tax reasonably approximately so April holds no surprises for me) but am holding off submitting it until I get tax certificates from a couple of bank accounts... and P60s from my PAYE jobs. Knowing my employer, this'll take a few months though...

MichA_3

Hi
I did my tax return on 10th April, and had my refund by 27th! Always nice to see some money coming in rather than going out...