Help in self assessment: Are you claiming to reduce your 2019-20 payments on account?

am.jovial

I am filing self assessment tax return for 2018-19. I am having to file tax return due to 'The High Income Child Benefit Charge '.

In my self assessment, I have the below numbers:

Total amount due for 2018-19: £1,550
First payment on account for 2019-20: £0.00
Total to be added to Self Assessment account due by 31 January 2020: £1,550
Second payment on account for 2019-20 will be due by 31 July 2020: £0.00

This is sum of Child benefit I have received plus the interest earnings through savings, current and Help-2-buy-ISAs etc.

In the next page in self assessment, I have this question:

Are you claiming to reduce your 2019-20 payments on account? Help about: Claim to reduce payments on account : Yes / No
Enter the reduced amount of your first payment below and say why you are making the claim.:
Your first payment on account for 2019-20: (Optional)
Please explain why you are making a claim:

My situation is that, few months back, I have moved to another country and have started working there so will not be earning my salary in UK. So, my earnings in UK for 2019-20 will be significantly less.
This being the case, do I have to select yes for 'Are you claiming to reduce your 2019-20 payments on account?' ?
If I say yes I have to calculate the exact amount and I am don't know how do I do that.

Is it ok if I say No to 'Are you claiming to reduce your 2019-20 payments on account? ' ?

In that case, will the extra tax that I possibly pay/any refund come back to me as refund from HMRC that I have been getting every year ?

Please guide me. I do not understand these tax filing and really struggling with all these :mad:

Dazed_and_confused

First payment on account for 2019-20: £0.00
Total to be added to Self Assessment account due by 31 January 2020: £1,550
Second payment on account for 2019-20 will be due by 31 July 2020: £0.00

How can you reduce your payments on account to less than zero

This is sum of Child benefit I have received plus the interest earnings through savings, current and Help-2-buy-ISAs etc.

Have you broken the rules for the Help-2-buy-ISA?

If not why have you included tax exempt interest on your return?

am.jovial

Dazed_and_confused wrote: »

How can you reduce your payments on account to less than zero

I will check my tax return to see if I have provided correct amounts here.

Dazed_and_confused wrote: »

Have you broken the rules for the Help-2-buy-ISA?
If not why have you included tax exempt interest on your return?

I was not aware if should not be including Help-2-buy-ISA interest here. I will check if I have violated any rules anyways (I am a first time buyer, have not owned a house anywhere).

By the way, should I be including my current and savings account interest ? Or, if my income is beyond some tax limit or my interest earnings are beyond certain limit, I should be including it in tax return?

Thanks !

uknick

You include all your TAXABLE interest received. The online system makes the adjustment for the £1k or £500 Personal Savings Allowance which is taxed at 0%.

am.jovial

uknick wrote: »

You include all your TAXABLE interest received. The online system makes the adjustment for the £1k or £500 Personal Savings Allowance which is taxed at 0%.

I also thought so hence declared the interests on

• savings+current accounts
• and Help-2-buy cash ISA

Please could you confirm?:
Help-2-buy cash ISA is not TAXABLE hence I do not have to declare it.
But, include only savings and current account interests as they are TAXABLE.

Thank you for your help.

uknick

Help 2 Buy ISA interest is tax free, so don't declare. Yes, include all other taxable interest. You say current and saving accounts, but there may also be income from other taxable investments, such as dividends, which needs to be declared.

am.jovial

I don't have any other taxable investments such as capital gains or dividends. Thank you for your help.

am.jovial

Please refer to the screenshot attached.

Summary page
my understanding is I owe HMRC a tax of £1550. I am not working in UK anymore and hence my income in UK will be almost zero. How will HMRC deduct tax? How can I pay this amount now?

In one of the previous pages, I have some options and I have selected as below:
Fill your return page options

Please could experts here guide me. Thank you.

Dazed_and_confused

There is no point in asking for the tax to be included in your tax code if you aren't earning anything now.

You will have to pay HMRC direct. There's probably details on gov.uk about how to pay.