TR-Payments on account??

C_Mababejive

Firstly i am far from expert in this area !

Im looking at my tax return for 2018-19. In early 2019 HMRC messed up ,changed my tax code and gave me a big tax refund via my monthly pay. I was unable to stop it happening due to timescale. It was linked to a previous personal pension contribution which should have been handled via the TR. Fast forward and i am now owning tax from my paye employment on my TR as a result of that tax refund. Thats fine,its clear, i owe it. I also have other incomes so all added up,it seems they now want a payment on account !

But if they hadnt messed up and given me a refund i wouldnt owe them the balance o the PAYE tax and therefore trigger a payment on account which will in effect leave me overpaying and probably having to claim a refund. Can i convince them that i dont need to make the payment on account?

BoGoF

You don't need to 'comvince' them. It's Self Assessment. If you think you won't owe tax for 19/20 you make a claim to reduce the payments on account to nil.

C_Mababejive

BoGoF wrote: »

You don't need to 'comvince' them. It's Self Assessment. If you think you won't owe tax for 19/20 you make a claim to reduce the payments on account to nil.

Thanks,,how do i do that ??

BoGoF

Have you submiuted your 18/19 return yet?

If not you can do it in the return. Otherwise you can do it via your online account or download form SA303

C_Mababejive

i have yet to submit my return,so im looking at a section where i can reduce the payment?? is that section numbered ??

BoGoF

Can't recall off the top of my head. Think it should be in the tax calculation section.

Dazed_and_confused

Remember the requirement to make payments on account is purely based on your tax Self Assessment liability, the reason for owing the tax is irrelevant.

So if you are due make payments on account for 2019:20 and reduce them to zero but ultimately have some tax to pay for 2019:20, irrespective of why tax is owed for 2019:20, then the payments on account would be reinstated (to a maximum of the amounts calculated from your 2018:19 liability) and you would be charged late payment interest if they are paid after the normal payment dates of 31 January and July 2020.

So if there is any possibility of some tax being due 2019:20 you should take that into account when making a claim to reduce your (2019:20) payments on account.

[Deleted User]

Reduce Payments on Account option at the very very end at ‘View your Calculation’

nomorekids

If you reduce your payments on account and then subsequently found to owe tax, interest on what you should have paid on account will be added to your tax bill.