Self Assessment - Paying tax for following tax year

villieb

Hi - sorry for the broad title of the thread but...

I've completed the self assessment and got £xxx amount to pay for year ending 2013.

Why am I being asked to pay £xxx amount for 2014?

Is there any way of not paying the tax I don't owe yet for 2014?

Thanks

Nilesh

zygurat789

villieb wrote: »

Hi - sorry for the broad title of the thread but...

I've completed the self assessment and got £xxx amount to pay for year ending 2013.

Why am I being asked to pay £xxx amount for 2014?

Is there any way of not paying the tax I don't owe yet for 2014?

Thanks

Nilesh

Tax for tax year 2013/14 is due 31/1/14 and 31/7/14. If there should be anymore due after these payments it is due 31/1/15

iancrt

if your total tax bill from untaxed income over 80% of your total tax bill for YE April 2013, you will be asked to pay some of next years (YE April 2014) tax as well - as tax is due at time of income, just doesn't have to be finalised until 31/01/2015. These payments will be set amount dues 31/01 and 31/07 This will generally happen if most of your income is untaxed.
I think its done so if you go bust they don't lose as much revenue.
If you know you earnings are significantly lower this year, you can apply to have these amounts lowered.
If you talk to an accountant these will be called 'Payments on Account' or 'Interim Payments'.
I think you can also change to paying them monthly, but you do have to hit the target amounts by the due dates

purdyoaten

iancrt wrote: »

if your total tax bill from untaxed income over 80% of your total tax bill for YE April 2013, you will be asked to pay some of next years (YE April 2014) tax as well - as tax is due at time of income, just doesn't have to be finalised until 31/01/2015.

I am not sure that this is correct Is it not the case that payments on account will be due if less than 80% of the total tax bill is deducted at source? (Or more than 20% NOT deducted at source)

At least I hope this has not changed in the fourteen days since I retired.

Not allowed to post links I see.

zygurat789

purdyoaten wrote: »

I am not sure that this is correct Is it not the case that payments on account will be due if less than 80% of the total tax bill is deducted at source? (Or more than 20% NOT deducted at source)

At least I hope this has not changed in the fourteen days since I retired.

Not allowed to post links I see.

We get all sorts of spam and adverts as just posts, if everyone was allowed to post links the ungodly would have a field day and this board would be an unholy mess.
Once the site gets to know you you'll be able to

purdyoaten

zygurat789 wrote: »

We get all sorts of spam and adverts as just posts, if everyone was allowed to post links the ungodly would have a field day and this board would be an unholy mess.
Once the site gets to know you you'll be able to

No - that's OK, That's what the site informed me when I tried to post the HMRC link. Thanks for the 'heads-up'. Hopefully learn a bit more as I post - two weeks retired and bored already!!

zygurat789

purdyoaten wrote: »

No - that's OK, That's what the site informed me when I tried to post the HMRC link. Thanks for the 'heads-up'. Hopefully learn a bit more as I post - two weeks retired and bored already!!

3 years "retired" still haven't got enough hours in the day. So much to do, so little time left to do it

iancrt

purdyoaten wrote: »

I am not sure that this is correct Is it not the case that payments on account will be due if less than 80% of the total tax bill is deducted at source? (Or more than 20% NOT deducted at source)

At least I hope this has not changed in the fourteen days since I retired.

Not allowed to post links I see.

Thats sort of what I said, but I missed a word out doh!

if your total tax bill from untaxed income IS over 80% of your total tax bill for YE April 2013.....
so if total tax paid £1000, and £800 or more of this is calculated from untaxed income you will need to pay interims for the next year.

purdyoaten

iancrt wrote: »

Thats sort of what I said, but I missed a word out doh!

if your total tax bill from untaxed income IS over 80% of your total tax bill for YE April 2013.....
so if total tax paid £1000, and £800 or more of this is calculated from untaxed income you will need to pay interims for the next year.

No that is not correct - i believe!. It should read :

if your total tax bill from untaxed income IS over 20% of your total tax bill for YE April 2013.....
so if total tax paid £1000, and £200 or more of this is calculated from untaxed income you will need to pay interims for the next year.[/

The rule is - if 80% or more of your TOTAL tax bill is deducted at source (i.e. less than 20% NOT deducted at source), you will have no payments on account to make.

jennifernil

Is it not also the case that if the amount of tax due was less than £1000 you will not be required to make POAs?

purdyoaten

jennifernil wrote: »

Is it not also the case that if the amount of tax due was less than £1000 you will not be required to make POAs?

Absolutely - iancrt just happened to quote £1000 as the example