Self Assessment Question

TheCyclingProgrammer

You should start your own thread.

chrismac1

Any tax system that needs the constant explanations payments on account do is a a load of drivel. This simple statement is one of the bleedin' obvious unless you work for HMRC.

00ec25

MarkDu wrote: »

The difference between what my company has covered and the HMRc rate is £4436.38.

Is this what I should claim and where in the self-assessment do I add this - do I need to provide further evidence?

YES

Box 17 on the employment page (as explained in the notes for each box if you read them)

tigerspill

Dazed_and_confused wrote: »

tigerspill

Think you've probably understood this but remember the requirement to pay payments on account for 2017:18 will always be based on your 2016:17 tax return, even if the tax due for 2017:18 is less than £1000.

So if the 2017:18 tax is only £500 each poa for 2017:18 would be £250 but the poa cycle would then stop and they would not apply for 2018:19.

NB. If your bill was bigger in 2017:18 the poa would remain £1000 each (using your example) with the balance being payable in January 2019.

The trick is to not over reduce them, try and guesstimate what you will have to pay for 2017:18, split that in two and reduce each poa to that figure. That minimises the risk of interest being charged.

If you end up paying more than was actually due you would be refunded after you have sent in your 2017:18 return.

Thanks for this. I think I have now grasped it now. My issue is that I dont expect my tax bill for this year to be any where near as high as last - hence my post. I think I can make a good stab at working out what it should be. So I will see to complete the reduction request to this estimate.

tigerspill

Hi Folks,
Just following up on this.
I have now completed and submitted my SA for 16/17. I changed the payment on account to a value closer what I believed to be the amount.

Where is this actually held on account - can I see it recorded somewhere?
And how and where do I account for this in my 17/18 SA and payment?

Thanks

[Deleted User]

tigerspill wrote: »

Hi Folks,
Just following up on this.
I have now completed and submitted my SA for 16/17. I changed the payment on account to a value closer what I believed to be the amount.

Where is this actually held on account - can I see it recorded somewhere?
And how and where do I account for this in my 17/18 SA and payment?

Thanks

You are complicating matters. When it comes to filing your 2027/18 tax return you take off what you ended up actually paying in January and July 2018..

tigerspill

[Deleted User] wrote:

You are complicating matters. When it comes to filing your 2027/18 tax return you take off what you ended up actually paying in January and July 2018..

OK - Thanks for this. Maybe I am being stupid here.
So I have elected to pay £500 in tax for 17/18 on account. £250 in each on January and July 2018.

Lets say I complete my 17/18 SA and it says I owe £600. So I have already paid £500 so owe £100. But unless I declare the £500 on the SA, it will say I owe £600.
So I assumed I would have to enter somewhere on the SA that I had already paid the £500.

Dazed_and_confused

You are getting two things mixed up.

Your calculation will show £600 is due for 2017:18. You cannot claim the £500 anywhere on your return.

But your self assessment statement of account will show £600 is due, £500 has been paid leaving £100 to pay.

Your return and (your) payments are separate things.

tigerspill

Dazed_and_confused wrote: »

You are getting two things mixed up.

Your calculation will show £600 is due for 2017:18. You cannot claim the £500 anywhere on your return.

But your self assessment statement of account will show £600 is due, £500 has been paid leaving £100 to pay.

Your return and (your) payments are separate things.

OK - Thanks for this. Can you advise where can I see my statement of account?

TheCyclingProgrammer

tigerspill wrote: »

OK - Thanks for this. Can you advise where can I see my statement of account?

It will be available under your personal tax account. It may take a few days to update.

Bear in mind if you have reduced your payments on account too much and end up owing more next January you will also be liable to interest on the underpayments.