'payment on account'

Mikeyorks

dampsquib wrote: »

The first POA due on 31/01/12 is in respect of income for the year ending 05/04/12, .

Not quite true. It's 50% of the amount due for 10-11. But it is allowed to be reduced if income flow for 11-12 is less. But - get it wrong and you're charged interest right back to the POA date(s)

tyllwyd

PaulS43 wrote: »

After having amended the automatic assumption that my earnings for 2011/12 are going to be the same as 2010/2011 (they aren't), my tax account still shows nothing owing. ....

Make sure that you don't get caught out because the system takes a while to update - I filed my return on Sunday, and as at this morning (Tuesday) the system was still saying nothing owing, even though I know that isn't right. The advice I've been given is to wait a bit longer for the system to update itself, it should be OK within a day or two.

Edited to say - as at Tuesday afternoon, it has updated for me and says it is up to date to 23 January.

dampsquib

"The first POA due on 31/01/12 is in respect of income for the year ending 05/04/12, ...."

Mikeyorks wrote: »

Not quite true. It's 50% of the amount due for 10-11. But it is allowed to be reduced if income flow for 11-12 is less. But - get it wrong and you're charged interest right back to the POA date(s)

I beg to differ. Whilst the amount of the first POA is equivalent to 50% of the tax due for 10/11, what you are actually paying is the first instalment (or Payment on Account) of your estimated tax due for 11/12.

Mikeyorks

dampsquib wrote: »

I beg to differ. Whilst the amount of the first POA is equivalent to 50% of the tax due for 10/11, what you are actually paying is the first instalment (or Payment on Account) of your estimated tax due for 11/12.

I wouldn't have commented on that. What I did comment on :

The first POA due on 31/01/12 is in respect of income for the year ending 05/04/12

.... was not the same, and is misleading in that it gives the impression the POA is calculated on income figures not yet available.