Payments in account

monkeyej

I have fairly recently started self-employed business as well as employment with PAYE.

Last years tax payment included 2 advance payments in account for the 2012-2013 tax year.

When I come to complete the 2012-2013 return, the tax calculation does not take account of payment in account I've already made for the year. How can I deduct what I've already paid as it seems like I'm going to pay double tax for self-employed income, and why don't HMRC do this automatically?

Davide123

It is deducted

00ec25

Davide123 wrote: »

It is deducted

disagree, read this thread,
https://forums.moneysavingexpert.com/discussion/4826368
you have to make the deduction yourself from the amount you physically pay. The HMRC system will then match up the total due with the balance on your account with them. You will see this when they send you the annual account statement showing your new balance

grey_gym_sock

it depends which HMRC document you're reading. they send me paper payslips before each 31 january and 31 july, which show the correct amount i have to pay, with all previous payments deducted. you can also find a correct statement of what you owe when somewhere in the online self-assessment site. but the tax calculation doesn't allow for payments in advance.

Davide123

00ec25 wrote: »

disagree, read this thread,
https://forums.moneysavingexpert.com/discussion/4826368
you have to make the deduction yourself from the amount you physically pay. The HMRC system will then match up the total due with the balance on your account with them. You will see this when they send you the annual account statement showing your new balance

They are actually deducted
don't know what software using
But 12-13 poas made, are deducted from 12/13 liability in order to get to balancing payment for the year.

00ec25

Davide123 wrote: »

They are actually deducted
don't know what software using
But 12-13 poas made, are deducted from 12/13 liability in order to get to balancing payment for the year.

I'm only repeating what the 3 regular contributing accountants state on the thread I linked to, it may come down to what you mean by deducted...?

System

Hi,

It's a two stage process. The Tax Return itself only shows the position at 5 April taking into account tax paid at source, eg via PAYE. The calculation doesn't take into account the payments on account made to directly to HMRC.

The end result of your Return calculation then passes over to your SA account, at which point your direct payments are taken into account.

For example if your Return shows £1200 to pay for the year to 5 April, but you've already made two payments on account of £500 each, when you log on to view your balance it will show £1200 - £1000=£200 still to pay.

Hope that helps.

nomunnofun

00ec25 wrote: »

I'm only repeating what the 3 regular contributing accountants state on the thread I linked to, it may come down to what you mean by deducted...?

You are absolutely correct!

However, if the op waits a day or so , all will become clear on the 'home screen' where it will say

'You have xxxxxxxxx to pay'

Mikeyorks

monkeyej wrote: »

How can I deduct what I've already paid as it seems like I'm going to pay double tax for self-employed income, and why don't HMRC do this automatically?

It is done automatically ........ just not instantaneously.

The online system you access for SA Return filing doesn't hold the mass of payment and other accounting data. The core SA system has that - and is separate in order the significant activity around key filing dates doesn't adversely affect everything.

When you file, your SA Return is then taken across to the core system. In turn that relinquishes the payments on account and passes the data back to the online system. This happens in Batch mode overnight - but may take over 24hrs at weekends. So the next time you log on to the online system it will show the correct net figure.

My recollection is that it does tell you about the temporary absence of POAs during the filing process.