Self assessment and payment on account

DavRos_2

Hi

I am trying to fill in my self assessment. In the year 2010-11 I was out of work for some 6 months so registered for gross interest on savings. later that year I got a job and so started paying tax but I had already received gross interest so I need to declare that.

The problem I have is when I enter it not only does it calculate the interest owed, it also comes up with a payment on account and so wants to charge me on 31 January for 50% of what it thinks I will it owe it from 2011-12. I have deregistered for gross interest a long time ago so this is not tax that I will owe.

I cant get through to the tax office - it just gives me a commentary that it is very busy then cuts me off (I see they have industrial action on today - great!).

So I dont have a problem paying tax i owe but not tax I dont know.

I will keep trying the tax office but if for any reason I cant get through what do people recommend ?

Thanks David

BoGoF

If you don't think you'll be due any tax for 2011-12 then you can make a claim to reduce your payments on account to nil. If you have online access to your statement you can do it that way or if you haven't yet submitted your return make the claim in your tax return.

DavRos_2

Ahha - i can this option now. Many thanks for clarifying this. David

Mikeyorks

I find this all a bit unclear. 'I got a job' appears to imply PAYE? And payments on account wouldn't normally be required if 80% or more of your tax was deducted via PAYE.

http://www.hmrc.gov.uk/sa/understand-statement.htm#1

Are you self employed .... or have you merely registered for SA to resolve the gross interest issue? If the former and you reduce the POAs excessively - you'll be charged interest right back to the original due date.

Some figures might clarify?

BoGoF

Good point Mike, was wondering myself originally. It would take a lot of gross interest to generate POA's for 11-12 if that was the sole reason for the underpayment.

ceeforcat

I wonder has he/she omitted to enter the tax paid on his/her employment? Would not be the first time that I have come across this.