Self Assessment! Help!

laurajd28

Hi,

I'm just doing my partners' self assessment, and I'm a bit confused!

I've got to the final part before I submit it, and it says the following:

Total tax, Class 4 NIC and Student loan due for 2010-11 £3,889.52
Plus
First payment on account for 2011-12 £1,944.76
Payment due by 31 January 2012 This amount does not take into account any 2010-11 payments on account you may have already made or tax due for earlier years.
£5,834.28

Second payment on account for 2011-12 will be due by 31 July 2012 £1,944.76

I thought that the amount owed was £3889.52, but why is there an extra £1944.76 added on, and a total of £5834.28 to be paid by the end of this month.

Any advice would be great!
Thanks!

ncthomas1

£1944.76 is half (50%) of the tax that is due for 10/11 (£3889.52)
Every year, the tax for the year is due PLUS a "Payment on Account" of 50% of it

So, in your case:

Tax due £3889.52
Payment on Ac £1994.76
Total £5834.28

The £5834.28 has to be paid by 31.01.12

I guess you are new to Self !!!. if you didnt realise about POAs - and I hate to be the bearer of bad news, but when we get to July 31st, 2012, you have to pay ANOTHER POA - so a further £1944.76

Sorry, I dont work for HMRC by the way - Im an accountant lol x

payless

remember you are paying this in jan 2012, but relates to earnings a long time before ( hence reason to pay on account for future declared income)
ie the return /payment in jan 2012 ( for existing businesses) could be for a trading period say 30April 09- 30april 10

laurajd28

Sorry, if I'm being thick, I'm really confused!

My partner has been self employed previously, and the tax return for 09/10 was done, and paid, and when I log into HMRC, it says that he owes nothing.

He hasn't been self-employed since 31/03/2011, and the tax return that I've done is for April 2010 to April 2011.
During that time, he earned approx £21k, with expenses that were deducted of just under £1k.

The £3889.52 sounds about right, what I was kind of expecting, but I still don't get what the payment on account is for???

BoGoF

The payment on account for 11/12 is on the assumption his liability will similar next year. If his self-employment ceased 31/3/11 then obviously he wont so if he doesn't expect to owe any tax for 11/12 then you should make a claim to reduce the POA's to nil.

laurajd28

BoGoF wrote: »

The payment on account for 11/12 is on the assumption his liability will similar next year. If his self-employment ceased 31/3/11 then obviously he wont so if he doesn't expect to owe any tax for 11/12 then you should make a claim to reduce the POA's to nil.

Excellent! I was hoping someone would say that!!

So I've just logged onto HMRC, and I've seen the option for 'reduce payments on account' but that says for tax year ending 2011, (is that right or should it be tax year ending 2012) do I put £0.00 in that box?

Thanks!!

laurajd28

Hi,

I've been on hold to HMRC for 45mins, and they've just cut me off - not happy!!

Basically, my partner hasn't been self-employed since 31/03/2011, and I need to make the payment on account figure £0.00.

I've clicked on the option for 'reduce payments on account' and it's brought up this box:


"For tax year ending 05 Apr 2011 I wish to reduce each of my payments on account to £0.00. I believe there will be no Income Tax or Class 4 NICs due for the tax year ending 05 Apr 2011.

I understand that if the payments on account due are greater than the amounts paid, interest will be charged on the difference and any false information given may result in financial penalties.

• Please select this box to confirm that you have read the above sentences and wish to submit your claim."

Am I doing this correctly, as he will be paying tax for tax year 2010-2011, but won't be paying anything for after 31/03/2010, as he's no longer self-employed.

Do I just tick the box and submit it?
Thanks!

BoGoF

What are you looking at when trying to do this - a statement.

If you didn't make a claim in the tax return then you will need to wait till the 2010-11 return has flowed to HMRC's systems....perhaps 48 hours from when you submitted it. Then it should give you the option to reduce 11-12 POA's. Do not amend the 10/11 POA's.

laurajd28

BoGoF wrote: »

What are you looking at when trying to do this - a statement.

If you didn't make a claim in the tax return then you will need to wait till the 2010-11 return has flowed to HMRC's systems....perhaps 48 hours from when you submitted it. Then it should give you the option to reduce 11-12 POA's. Do not amend the 10/11 POA's.

I wasn't on a statement, it was literally just on the self-assessment main page, and I clicked on the link for 'reduce payments on account.'

I haven't submitted the tax return for 2010-2011 just yet, is there somewhere on the tax return that I can change the POA to £0.00?

Thanks!

BoGoF

The POA's won't be generate till you actually submit the Tax Return.

To make the claim in the tax return, boxes 9,10 & 16 of the tax calculation summary page.

laurajd28

BoGoF wrote: »

The POA's won't be generate till you actually submit the Tax Return.

To make the claim in the tax return, boxes 9,10 & 16 of the tax calculation summary page.

They don't seem to have box numbers and there isn't a page called tax calculation summary.

Sorry if I'm being completely thick here! Should I just leave it as it is (as per the amount details on my very first post), and will the system then rectify it? I've put in the return that self-employment ended on 31/03/2011.