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Payment on account for next years tax bill

LandM1
Posts: 55 Forumite


in Cutting tax
Last year was the first year I got an accountant to do my tax, as I'd inherited a couple of flats and some cash from my mum and I thought it would be more complicated. However the accountant messed up and the online form wasn't submitted in time to pay the excess tax via PAYE. HMRC also said I'd got to pay 2017 to 18 tax on account. Previous to this I'd always paid any tax due on the property I owned and money invested before I inherited the two extra flats and money from my mum via PAYE.
So this year I'm doing my tax online myself again, but when I got to the end, again it says I've got to pay 2018 to 19 tax on account. So I've got to find two large lump sums again.
Can anyone explain why I suddenly can't carry on paying my tax via PAYE? The outstanding amount from rental income and investments is about £1300. Is there any way to get HMRC to take it all via PAYE again? In addition to my properties and investments I have a state pension and a teachers pension.
So this year I'm doing my tax online myself again, but when I got to the end, again it says I've got to pay 2018 to 19 tax on account. So I've got to find two large lump sums again.
Can anyone explain why I suddenly can't carry on paying my tax via PAYE? The outstanding amount from rental income and investments is about £1300. Is there any way to get HMRC to take it all via PAYE again? In addition to my properties and investments I have a state pension and a teachers pension.
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Comments
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simple, where the total amount of tax owed is >£1,000 you will automatically be put on payment on account unless you have already paid at least 80% of what you owe (for example through PAYE). There are limits on how much tax can be collected through a PAYE code adjustment, bear in mind your state pension is untaxed so that + the rental is what matters.
https://www.gov.uk/understand-self-assessment-bill/payments-on-account
given you are actually paying in arrears, from a cash flow perspective it is much better to be POA not via PAYE anyway . If you can't manage your cash to have the lump sums ready on time that is a different matter.0 -
Do you have enough income from PAYE to collect the tax via your tax code.
If the collection of the tax due doubles, or more than doubles the amount of tax being collected under PAYE then you won't be able to do it this way.
If it won't double or more than double your tax deduction then you can have the tax collected via your code and won't have to pay payments on account.
To sort this out first of all ensure you have not checked the box on the return which states you DO NOT want to collect tax via your code.
Then submit your tax return.
Wait a few days for the details to fully update your tax records, usually 72 hours, then log back into your online SA account to view your statement.
You may find that the transfer has already been done when you log back in. If not you can either request this online or call HMRC to arrange the collection via your 2019/2020 tax code.
Once this is done the Payments on Account will be cancelled.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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