First payment on account for

Jamsmyth

Ok been going through my return.

Got to the end and it tells me my calculation. Plus it adds on 50% of Payment on account for the 2012-2013.

Now here is what I don't get. I did the same last year. Paid 50% with Jan amount and then another 50% in July for 2011-2012. Why then when I come to file my return for 2011-2012 am I paying the full amount in tax (plus 50% of next years)?

Seriously confused....

nomunnofun

If you have only just filed, or are about to, the payments on account for 2011/12 will not be deducted from the final total.

Add the calculation amount plus the first payment on account and take away the two payments on account for 2011/12.

It will all rectify in a few days.

Cottage_Economy

I'm sorry to hijack this thread a little, but in relation to what you just said can I confirm something?

Let's say my tax for 2011/12 is £1000
The first payment on account for 2012/2013 is £500
So my total tax bill due today would be £1500 with a further £500 paid on 31st July later on this year.

I made two payments on account last year of £500 each (so £1000 in total), for 2011/2012, so tonight I should be paying £500 for the first payment on account for 2012/2013 because the tax bill for 2011/12 is already taken care of.

Is that right?

nomunnofun

Could not have explained it better - correct!

Cottage_Economy

At the risk of sounding like a complete idiot, I only realised this a couple of years ago and I've been submitting a yearly tax return since 2005.

Somewhere along the line I got confused one year and paid the whole thing without taking account of what I already paid, and continued to do so every year thereafter. So every year HMRC would try and rectify the situation and I'd end up with a statement saying I had nothing to pay in July and a repayment which I didn't understand why I had.

Talk about a lightbulb moment when I realised.

I did a 'Carlton' dance all around the living room.

Jamsmyth

Thanks guys I did actually call HMRC (Booo!) to talk it over with them better sound like an idiot than actually be one thats my motto (well it should be). Anyway the guy on the phone sounded very bored of the whole thing and said he must have answered the same question about 20 times that day already and he is not sure why they system does not recognise payments on account when giving final calculation.

Needless to say there was much celebration on my part when I realised my tax bill was not twice what I had expected it to be.

I put the problem firmly at HMRC door. Just when I thought I couldnt dislike those blokes any more!