Self assessment tax confusion - First payment on account for 2011-12 ?

MisterM2011

Hi

I am just about to save my first full year self employed self assessment submission via the HMRC self assessment website. I started my business at the beginning of 2010, so only had 3 months worth of earnings to submit last January.

I have entered all the info required and have been presented with the amount of tax I owe, which is just under £4000, which is about what I had calculated myself. But below that amount, I am being asked for a further £2000 for "First payment on account for 2011-12"!!

Is this normal? to be asked for 50% of next years tax up front and a further 50% "Second payment on account for 2011-12 will be due by 31 July 2012"?

I've gone through my return several times to see if I have selected an option I shouldn't and can't see any mistakes.

If this is correct, it's going to cripple me financially after only my first full year in business.

I can't find any info about this on the HMRC site nor can I get hold of anyone on the phone.

Many thanks

Mr M

Mikeyorks

Perfectly normal - where the previous year liability exceeds £1k.

Fairly well covered here?

http://www.hmrc.gov.uk/sa/understand-statement.htm:

If you're struggling then pay the balancing payment of £4k (as that's subject to Surcharge if late) and contact them to arrange a bit of time for the POAs. Don't reduce the POAs if your profits are continuing at the same level as you will be charged interest right back to the original due date if you get it wrong.

MisterM2011

Ah yes. Thank you Mike. I don't know how I missed that page.

All makes sense now.

Mr M