First time tax returner

Turnwood

I have just filled out my first tax return because my income last year (17/18) was just over 100k. My HMRC account now says I now owe lots of money (payments on account) but almost all of my tax is collected through PAYE and the amount I think I owe is well below 3k so I presume this would just be collected through a change in tax code. The amount I owe for 2018/2019 is close to the value of tax paid detailed on my P60.

Have I done something terribly wrong with my return or can I expect these payments on account to disappear once HMRC have fully processed?

Many thanks.

Dazed_and_confused

Did you sanity check the return before sending it to HMRC?

The amount I owe for 2018/2019 is close to the value of tax paid detailed on my P60.

This makes it sound suspiciously like you have failed to include the tax deducted by your employer on the return.

Did you read the notes which explain how to complete the return?

can I expect these payments on account to disappear once HMRC have fully processed?

If you can see the outcome on your account then they have fully processed the return. It does seem like you may have made a mistake when completing it

Turnwood

Thanks for the reply.

I included the tax paid during the year as detailed on my P60 in the appropriate section (or so I thought). I will double check and amend as necessary if I have messed up.

Dazed_and_confused

If once you have sorted it you do owe less than £3,000 and are still earning good money then it should be possible for the tax owed to be collected by an adjustment to your 2019:20 tax code

NB
Your original post mentions the tax you owe for 2018:19 but I'm assuming the return and tax owed is for 2017:18.

Turnwood

All sorted - new calculation is that I owe £42 and I have resubmitted the amended return. Will wait now to see if my large payments due on account disappear. I ticked the box requesting that I pay via a change in tax code so presumably I now wait until they notify me of a change in code?

Dazed_and_confused

You should be able to see the revised position on your self assessment account in a couple of days.

But I noticed this on the paper return,

If you owe less than £3,000 for the 2017–18 tax year (excluding Class 2 NICs) and you send us your paper tax return by 31 October, or 30 December 2018 if you file online, we’ll try to collect the tax through your wages or pension by adjusting your 2019-20 tax code.
If you don’t want us to do this, put ‘X’ in the box

Maybe online is different but could you have inadvertently said you don't want it collected through your code?

Anyhow, it will show on your account shortly, either as a balancing payment of £42 to pay in January or a balancing payment of £42 to be collected via your code.

You cannot have payments on account for 2018:19 if your total bill for 2017:18 is only £42.