Tax due and tax on account

olbas_oil

Apologies for a really stupid question, but I'm late in filing a paper return, and hope to avoid the penalty by paying all the tax that is due, so I'd appreciate some re-assurance.

last year I paid two lots of £470 on account for 08/09
I have just calculated that I actually owe £949 for 08/09.
I assume that means that I have to pay the £9 difference plus the first of the payments on account for 09/10 of £475 with another due in July.

So if I pay £485 (actually rounded up to £500 to be a little more sure I leave nothing unpaid) have I avoided the penalty... or have I miscalculated what is due, when.

jennifernil

Sounds about right. They add the shortfall for 08/09 to the on account payments you made to work out the on account payments for 09/10.

Mikeyorks

If your £949 is correct ..... then £485 will more than cover it.


............... as the limit at which you're required to make payments on account is in the process of being lifted from £500 to £1000. So you really only need to pay the £9. The change applies from assessment year 09-10 ......... but that means it impacts payments on account due in 2010.


Extract from the Regulation amendment here :-

7.3. The new threshold will be introduced for the year of assessment 2009-10 and not earlier as it will not be possible to make the necessary IT changes to SA until then. The threshold will applied to that and all subsequent years and will mean that those taxpayers with liabilities under £1,000 in 2008-09 will not have to make instalment payments on 31 January and 31 July 2010 towards their 2009-10 liability, but will instead make a single payment on 31 January 2011.

Decision time ?? Are you cautious ... or bold? Is your £949 correct .... or could it creep over £1000?

System

olbas_oil wrote: »

Apologies for a really stupid question, but I'm late in filing a paper return, and hope to avoid the penalty by paying all the tax that is due, so I'd appreciate some re-assurance

You need to give a very good reason for filing a paper return late rather than doing it online. There has been nothing through this year that indicates that they are going to be willing to remit the penalty just because you pay the tax owed by 31st January 2010