self assessment payment OVERDUE now?

Atui

Hi,

I submitted self assessment for 2017-2018 online on Sunday, today when I log in to make the payment, I found a big red xxx pounds OVERDUE appearing on the self assessment page, the amount xxx matches the outstanding payment according to the calculation,but.... it's still 9 days before 31 Jan, anyone has any idea why this is happening?

We then logged into a relative's account together, she completed the self assessment on Sunday too, but her is showing payment xxx pounds, 11 days left, i.e.: no signs of overdue at all.

Dazed_and_confused

What is the exact wording of the charge shown as overdue?

Did you file a Self Assessment return for 2016:17?

If you did file a return for 2016:17 were payments on account required for 2017:18?

If payments on account were required for 2017:18 did you make a claim to reduce them?

Atui

on the new style portal, it's a big RED 43.40 pounds OVERDUE - pay now to avoid further penalty.

on the old style self assessment portal (when you click more self-assessment details), at a glance:
£43.40 is now due for payment.
Interest may be charged on late payment of amounts due now.

yes I did file a self assessment for 2016-2017.

no, payment on account is required for "tax year ending 05 Apr 2018"m exact word under current position:

GBP43.40 is due for payment. A breakdown of this amount is outlined in the table below. Follow the appropriate link within the 'Description' column to find out more.

Description Help about: Description (Tax year summary) - opens in a new window
Amount (£) Help about: Amount (due now) - opens in a new window
Tax year ending 05 Apr 2018 43.40
Total 43.40

to be precise, I paid 200 (for 2017-2018) by 31 Jan 2018, another 200 (for 2017-2018) by 31 July, my total tax due is 443.4, so leave me with 43.4 outstanding payment, this is fine, but no idea why it is classified as "OVERDUE", it's completely different wording on my relative's portal

Atui

btw, there is no penalty shown in my account at all (yet?) - Just confused why it's shown as a big red flag.

Anyway the good news is...I browsed a few posts in the forum after mine, and realised there is now a "property income allowance" that I was not aware of - so great amended my submitted self-assessment, removed expense (400 ish), used 1000 allowance instead, now tax due is actually 325 pounds! Still waiting for the portal to update though.

Dazed_and_confused

If no payment on account was required then why did you pay £200 in January and July 2018??

It sounds as though you had larger payments on account (the amounts due based on your 2016:17 return). And reduced these to £200 each time. But now your 2017:18 return has been submitted it turns out you owe £443.40 for 2017:18 so should have paid £221.70 each payment on account.

Dazed_and_confused

If the tax due is now £325 then each payment on account for 2017:18 would be reduced to £162.50.

No payments on account would be required for 2018:19.

Atui

Dazed_and_confused wrote: »

If no payment on account was required then why did you pay £200 in January and July 2018??

It sounds as though you had larger payments on account (the amounts due based on your 2016:17 return). And reduced these to £200 each time. But now your 2017:18 return has been submitted it turns out you owe £443.40 for 2017:18 so should have paid £221.70 each payment on account.

yes I had a larger payments for 2016-2017 (when I had a job) - then I knew I was going to quit so I asked for reduced pre-payment, 200 each, I think this is a fair estimate because I could not really tell how much tax I need to pay in Jan 2018 - that tax year had not even finished.

What I was confused was what happened to my relative.
She pre-paid 800ish(calculated by inland revenue) on 31/01/2018 and 31/07/2018 respectively, now he total tax due is 3200 pounds, so 1600 pounds outstanding, but it is shown as 11 days left before payment is due on her portal - no big RED OVERDUE word at all?

Atui

Dazed_and_confused wrote: »

If the tax due is now £325 then each payment on account for 2017:18 would be reduced to £162.50.

No payments on account would be required for 2018:19.

I was after full refund actually, 75 pounds + 43ish pounds I paid by mistake tonight.

because next tax year it will be pure rental income covered by personal allowance.

Dazed_and_confused

The reason the tax is (was) overdue is because you made an incorrect claim to reduce your 2017:18 payments on account.

The 2017:18 payments on account are determined by your 2016:17 liability. They can be reduced if your 2017:18 liability is lower but the basis for them is always the 2016:17 liability.

So in a perfect world you should have reduced them to £221.70 each time.

Now you have amended your return each payment on account will be £162.50.

So if you have actually paid £200 each time you will be entitled to a refund of £75 (plus a little bit of interest). Your £43 will also be refundable but i don't think you will be entitled to interest on this.

Atui

Dazed_and_confused wrote: »

The reason the tax is (was) overdue is because you made an incorrect claim to reduce your 2017:18 payments on account.

The 2017:18 payments on account are determined by your 2016:17 liability. They can be reduced if your 2017:18 liability is lower but the basis for them is always the 2016:17 liability.

So in a perfect world you should have reduced them to £221.70 each time.

Now you have amended your return each payment on account will be £162.50.

So if you have actually paid £200 each time you will be entitled to a refund of £75 (plus a little bit of interest). Your £43 will also be refundable but i don't think you will be entitled to interest on this.

Thanks a lot for your detailed explanation!