"payment on account"

-null-

I'm filling in my tax return for the last tax year and I noticed the following when viewing my calculation.

It doesn't include any 2012-13 payments on account you may have made or any other amounts outstanding. To help you to decide how much, if anything, to pay by the due date, check your Self Assessment account and use the information above until it transfers over.

I paid over £4000 towards the 2012-13 tax year with my last tax return. How do I get these payments on account deducted from the calculation.

[Deleted User]

You remember how much it was and deduct it yourself in the payment. If you owe £20,000 and paid £4,000 POA, then you pay £16,000. You can find exactly what you've paid through your account on the website.

Here is a topic from last month asking the same thing: https://forums.moneysavingexpert.com/discussion/comment/63421286#Comment_63421286

nomunnofun

-null- wrote: »

I'm filling in my tax return for the last tax year and I noticed the following when viewing my calculation.



I paid over £4000 towards the 2012-13 tax year with my last tax return. How do I get these payments on account deducted from the calculation.

You will not get them removed from the calculation which is the total of your tax liability for the year. There is an option to view all payments on the menus.

PlutoinCapricorn

The tax return is free-standing, it does not take POAs into account.

Leave it to update overnight, then look at your Statement. You should also get a Statement with payments made and due in the post.

chrismac1

This is why it's good to be doing your tax return now, not in January. Suppose you paid £950 on 31 Jan 13 for 11-12 liability. Under £1,000 so no PoA. Let's say things have improved for you as the economy began to recover and you have a tax bill for 12-13 of £1,800. Well that means your 31 Jan 14 tax payment is £2,700 which is three times what you paid 12 months earlier.

This catches a lot of folk out. Having this to deal with in November is one thing, having it to deal with on 25 January because you've been a "deadline chaser" is a whole lot worse.

-null-

Checked my statements and I think it's clicked. When I get the statement of what I have to pay the balance brought forward will have the amount already paid for 2012/13. So I will just need to pay the rest.

Thanks for the replies.

zygurat789

chrismac1 wrote: »

This is why it's good to be doing your tax return now, not in January. Suppose you paid £950 on 31 Jan 13 for 11-12 liability. Under £1,000 so no PoA. Let's say things have improved for you as the economy began to recover and you have a tax bill for 12-13 of £1,800. Well that means your 31 Jan 14 tax payment is £2,700 which is three times what you paid 12 months earlier.

This catches a lot of folk out. Having this to deal with in November is one thing, having it to deal with on 25 January because you've been a "deadline chaser" is a whole lot worse.

And, just as important:
Suppose you paid £1,000 on account on 31 January 2013 and 31 July 2013 and things deteriorated for you and your tax bill for 2012/13 was only £100 then you can reclaim your £900 already paid. If you had been really on the ball, depending on your year end, then you might not have had to pay the payments on account at all.

Delphina

zygurat789 wrote: »

And, just as important:
Suppose you paid £1,000 on account on 31 January 2013 and 31 July 2013 and things deteriorated for you and your tax bill for 2012/13 was only £100 then you can reclaim your £900 already paid. If you had been really on the ball, depending on your year end, then you might not have had to pay the payments on account at all.

If you file your next return before 31/7, the 2nd POA from the previous tax return will be correctly adjusted. This means you might only have overpaid because of the first POA not both POAs, or you have not overpaid at all. POAs may sound like something you pay in advance. But they are not advance payments because we are always a year behind in paying tax through Self Assessment while employees pay as they earn.

zygurat789

Delphina wrote: »

If you file your next return before 31/7, the 2nd POA from the previous tax return will be correctly adjusted. This means you might only have overpaid because of the first POA not both POAs, or you have not overpaid at all. POAs may sound like something you pay in advance. But they are not advance payments because we are always a year behind in paying tax through Self Assessment while employees pay as they earn.

This is, of course, only practicable for those whose accounts year finishes in April, May or June.

Delphina

It is normally either April to March or Jan to Dec accounting period, my method works for both. I have done it myself many times.

The last time was this June. I did my husband's tax return. His accounting period is from Jan to Dec, I would love to tell you how much money we managed to save relating to the 2nd POA, but I don't think I should.

Cheers!

zygurat789

Delphina wrote: »

It is normally either April to March or Jan to Dec accounting period, my method works for both. I have done it myself many times.

The last time was this June. I did my husband's tax return. His accounting period is from Jan to Dec, I would love to tell you how much money we managed to save relating to the 2nd POA, but I don't think I should.

Cheers!

Then his income musdt have dropped considerably from the previous year