Tax Payment on Account

francohoops

Hi,

During 10/11 tax year I started to receive income from a property which I rent out. Having completed my SA form, total tax due for 10/11 was £500. This related to 4 months of rent (Dec 10-Apr11).

Given my rental income will be based on 12 months for 11/12, should I be making a payment on account to the HMRC in lieu of next years tax liability?

How would this work and where on the form would I need to flag it? What happens if I don't and just wait?

Thanks for your help.
F

BoGoF

George_S wrote: »

New simplified income tax protocol:

1. How much money did you make this year?

2. Send it to us.

Eh?

No you won't need to make any payments on account for 11/12. Regardless of the period the income arose you are only required to make POA's if your tax owing is over £1000.

So say when you file your 2011-12 tax return and the tax is £1200 you will pay that £1200 on 31/1/13 then another £600 as a POA for 12/13 also on 31/1/13. Your second POA will be on 31/7/13.

Mikeyorks

francohoops wrote: »

Given my rental income will be based on 12 months for 11/12, should I be making a payment on account to the HMRC in lieu of next years tax liability?

No. You're only required to make payments on account where the 10-11 liability is £1000 or more.

But you do need to keep it in mind for 31st Jan 2013 where you will likely have the balancing payment to make for 11-12 + 50% on account of 12-13.

Ignore post #2 ..... recently joined idiot who's making multiple posts all over the place. So won't be around long.