📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Payment in advance confused - self employed

Options
2»

Comments

  • purdyoaten
    purdyoaten Posts: 1,159 Forumite
    Brighty wrote: »
    I got caught by 'payment on account' in Jan this year, didn't even know it existed. My tax bill in previous years had been about £600-800, but due to a change in circumstances i was now going to owe £1400. Submitted my return in Jan as usual, expecting a £1400 bill, only to find out they wanted £1400 for that year, plus another £700 as half payment in advance for the coming year with another £700 due in July! Came as quite a shock.
    As i knew i would be back down below £1k again this year, i reduced my payment in advance down to £500 and submitted this years return as soon as possible so that i payed an accurate amount this month (£450). What i don't know is whether i now i am back below £1k, do i still need to carry on paying on account twice a year?


    Brighty

    No you do not - each year is considered on its own.
    There are 10 types of people in the world - those who understand binary and those who do not. :doh:
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599.1K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.