Payment on Accounts too high?

looknohands

Hi I just completed my 16-17 self assessment and I owe £5,709.73 in tax to be paid Jan 2018.

In Jan 2017 I reduced my payment on accounts to £4017.00 because I knew I'd owe less tax, I have paid the one payment on account of £4017.00 in Jan, however I don't think I reduced them enough as I have another payment on account of £4017.00 due July 31st 2017.

Am I correct in thinking that I only need to clear £1692.73 to cover my remaining payment on account obligations for 2017?

My payments on account then increase to £1896.37 for Jan 2018.

I have done my tax return very early as I thought this might happen.

Dazed_and_confused

If your opening sentence,

Hi I just completed my 16-17 self assessment and I owe £5,709.73 in tax to be paid Jan 2018.

is true then your POA will not change and you will have £4017 to pay in July as well as the £5709.73 next January but if you really mean you have completed your 16-17 self assessment and owe £5709.73 for the 16/17 tax year i.e. that is what your tax calculation shows is due for 2016:17, then the following should happen (assuming the whole of the £5709.73 is relevant for POA purposes).

16:17 liabilities
31:01:2017 POA will be reduced to £2854.86
31:07:2017 POA will be reduced to £2854.87
31:01:2018 Balancing Payment will be £0.00
If you did pay £4017.00 towards the 31:01:2017 POA any excess above £2854.86 will be moved to the 31:07:2017 POA

17:18 liabilities
31:01:2018 POA will be £2854.86
31:07:2018 POA will be £2854.87

I don't understand, from the info you have provided, where you have got the £1896.37 figure from for next January?

Once you have submitted your return wait a couple of days then your your self assessment statement online, this should show any adjustments which have been made and what is due to be paid.

looknohands

Just checked my account, now says I am £2,120.64 in credit and due a refund from this of £224.27.

My payment on account for July 2017 - £1,896.36 but this is actually £0 as the credit will pay this.

Then Balancing payment Jan 2018 - £1,917.00
Payment on account for Jan 2018 -£1,896.36

I think POA doesn't include student loan repayment, so my £5709 I mentioned I owe includes student loan, if you deduct this it comes out at £3792 in tax and NI, hence why I have £1896 POA, rather than £2854 you mention.

I don't really understand why they've shifted my tax into a balancing payment rather than making me pay it as a POA in July though.

Dazed_and_confused

You are having to pay the July 2017 payment on account, it's just that the money you paid in January is enough to pay that and the July one.

Gov.uk says student loan aren't part of payments on account so these must always come as a balancing payment