self assessment query , payment on account

Jk2000

I'm currently filling in my 16-17 self assessment return,


My 15-16 self assessment for the first time went over the threshold where it requires you to make two payments in advance on 16-17.
In this case the bill for 15-16 was £2k and the advance payments were £1k in January '17 and £1k in July '17.


now i come to fill in my 16-17 self assessment having earned about £20k my bill comes to £3.7k as expected plus the 17-18 advance payment .


my question is, why do the 2 advance payment made on 16-17 not seem to be deducted from this year 3.7k bill as expected to be £3.7k - £2k = £1.7k?


thanks,

Dazed_and_confused

It's because they have nothing to do with the actual calculation of your 2016:17 self assessment liability.

A couple of days after you submit your return you should check your statement of account and this will show the amounts due and payments already made which have been allocated to them.

Based on your post you will still have £1.7k to pay on 31 January to finalise 2016:17 and another £1.85k (possibly less depending on NI/student loan elements) payable the same day as a payment on account for 2017:18.

Not sure about the reference to "advance" payment on account given we are three quarters of the way through 2017:18

Jk2000

Dazed_and_confused wrote: »

It's because they have nothing to do with the actual calculation of your 2016:17 self assessment liability.

A couple of days after you submit your return you should check your statement of account and this will show the amounts due and payments already made which have been allocated to them.

Based on your post you will still have £1.7k to pay on 31 January to finalise 2016:17 and another £1.85k (possibly less depending on NI/student loan elements) payable the same day as a payment on account for 2017:18.

Not sure about the reference to "advance" payment on account given we are three quarters of the way through 2017:18

thanks for the response, it's a very new concept to me , and probably not the correct term to call it a advance payment.


let me try and explain .


in January 2017 on top of the tax calculated for 15-16 I paid £1k , then a further £1k in july 2017 . these payment were called ' First and second payment on account for 16-17' respectively .


so to recap , that's £2k already paid for 16-17 SA .


today the calculated tax bill for 16-17 is £2.6k (based on 20k profit that seems reasonable) , as stated I've paid £2 already
on 16-17 tax year, my bill should therefore be £2.6k-£2k = £0.6k.


note - I've omitted 17-18 payments requests.


hope that makes sense

Dazed_and_confused

I don't really understand why the £3.7k has dropped to £2.6k between your first and second post but irrespective of that I'm sure it will make sense to you once you have submitted the return and looked at your statement of account a couple of days later.

Based on the £2.6k you will have £1.9k to pay at the end of this month (£0.6k for 2016:17 and £1.3k for 2017:18, subject to any reductions relating to NI or student loan elements)

Jk2000

Dazed_and_confused wrote: »

I don't really understand why the £3.7k has dropped to £2.6k between your first and second post but irrespective of that I'm sure it will make sense to you once you have submitted the return and looked at your statement of account a couple of days later.

Based on the £2.6k you will have £1.9k to pay at the end of this month (£0.6k for 2016:17 and £1.3k for 2017:18, subject to any reductions relating to NI or student loan elements)

sorry I'd confused issues , this should explain.


£3.7k =
£2.6k Total amount due for 2016-17
+
£1.2k First payment on account for 2017-18



so i have £3.7k to pay at the end of this month

Dazed_and_confused

Surely you only have £1.8k to pay at the end of January? I have no idea where you are getting £3.7k from if you have already paid £2k of the amount due for 2016:17???

You really would be best off checking your account a couple of days after submitting your return.

Jk2000

Dazed_and_confused wrote: »

Surely you only have £1.8k to pay at the end of January? I have no idea where you are getting £3.7k from if you have already paid £2k of the amount due for 2016:17???

You really would be best off checking your account a couple of days after submitting your return.

yes it's defiantly £3.7k due this month, plus £1.2k in july,

think a call to HMRC may be in order

Jk2000

Dazed_and_confused wrote: »

Surely you only have £1.8k to pay at the end of January? I have no idea where you are getting £3.7k from if you have already paid £2k of the amount due for 2016:17???

You really would be best off checking your account a couple of days after submitting your return.

finally ! just noticed this statement ..


"Total due by 31 January 2018
£3,766.46
This amount does not take into account any 2016-17 payments on account you may have already made

"


so as you said all along, in a few days my account should update to include payment made against this year,


thanks

Dazed_and_confused

sorry I'd confused issues , this should explain.

£3.7k =
£2.6k Total amount due for 2016-17
+
£1.2k First payment on account for 2017-18

If the total amount due for 2016:27 is £2.6k and, per your op, you have already paid two £1k payments then isn't the amount left to pay for 2016:17 just £0.6k?

Add on the first payment on account for 2017:18 which, if the total due for 2016:17 is £2.6k, is a maximum of £1.3k.