Payment in advance confused - self employed

purdyoaten

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.