Self Assessment payments on account

mchaggis69

Any advice appreciated -

I have just completed (but not submitted) by self assessment tax return online for year 2015-16.

The calculation shows I owe £4,090 for that year in underpaid tax for 2015-16.
Thats fine, I was expecting it and it ties in with my own calculation.

For current year 2016-17 I can reasonably accurately predict I am going to *overpay* tax by around £1,100.

The question is, can I reduce the £4,090 payment due by end January 2017 to reflect the strong likelihood I am going to overpay tax this year?

On the return in s6 there are questions -
"Are you claiming to reduce your 2016-17 payments on account?" yes/no

If I select 'yes' the following appears -
"Enter the reduced amount of your first payment below and say why you are making the claim."
Your first payment on account for 2016-17:£
Please explain why you are making a claim:*

Based on the £4,090 underpayment in 2015-16 and likely overpayment of £1,100 for 2016-17 can anyone advise what figure I actually put on the assessment application?

Darksparkle

Does the £4090 include the payments on account or is it simply the tax/NIC due for 2015/16?

mchaggis69

Thanks for the reply - the £4,090 is just the assessment of the tax underpaid (and due) for 2015-16

Darksparkle

You can't reduce that then, it's still due regardless of whether you'll have overpaid the following year.

If you have payments on account due then you can request they be reduced but not the tax you already owe.

Why is it likely you'll have overpaid? Could you have your tax code amended to take this into account?

[Deleted User]

Are there no payments on account for 2016/17 also?

mchaggis69

thanks for the help...

I will just pay the £4,090 in January.
I know how much I will earn this year, and also looking at the tax paid per month I can work out fairly easily I will overpay.

Had this problem for about 6 years now. My total pay is subject to a variable bonus and HMRC have always been !!!!poor at allocating me a suitable code. In the past they have actually refused to adjust it and told me to 'wait on self assessment'. This year, overpaying by just £1,100 is the closest they have come in that 6 years to getting it right.:(