Payments Already Made On Account

Axel

I have just completed my return and the calculation and amount showing as owed does not include payments made on account for the 18/19 tax year. Last January I paid 50% of the estimated 18/19 tax and the other 50% in July. My calculation for 18/19 also includes 50% of the estimated 19/20 tax and the other 50% due in July.

The calculation for this year states that "This amount does not take into account any 2018-19 payments on account you may have already made" However when the log into the SA site the full amount is showing as owed. Do the payments made on account get deducted when I go to make the payment and if not where have they gone?

Dazed_and_confused

You are getting two things mixed up.

1. Your Self Assessment tax calculation (SA302). That is the calculation of your tax (and NI, student loan & HICBC if applicable) due for that specific tax year. This takes into account tax deducted at source such as PAYE tax but not anything you have paid to HMRC.

2. Your Self Assessment account where the amounts owed for each year are collected.

So you need to file the return and then wait a few days for your account to be updated.

If you post the bottom line from your 2017:18 and 2018:19 calculations it should be possible to say roughly what your account will look like.

Axel

Thanks for the response. I submitted the return on 9th January and received an email confirmation on the day so I would have thought my account would be up to date. Perhaps I need to go on to make the payment and see if payments on account have been deducted?

Dazed_and_confused

The payments on account are never deducted from anything.

You should end up with a statement along the lines of the bottom 5 entries below (made up figures which do not take into account that some things like Class 2 NIC are not included in POA).

2017:18 SA302 liability = £2,600
2018:19 SA302 liability = £3,000

31:01:2019 = 1st 18:19 POA = £1,300
31:07:2019 = 2nd 18:19 POA = £1,300
31:01:2020 = 18:19 Balancing Payment = £400
31:01:2020 = 1st 19:20 POA = £1,500
31:07:2020 = 2nd 19:20 POA = £1,500

Nearlyold

You should be able to see the current amount owing on the tax.service.gov.uk/business-account page

Is that the page you've been looking at? It should only take 2 days to update after receipt of your return.

Axel

There is definitely a problem with my account. I have gone all the way to making a payment and there is no deduction for almost £2K already paid on account. When I to to statements or statement history only one statement appears which is 10th June 2018. There is nothing for 2019 although I paid my tax last January, including a payment on account for 18/19, and I made the second payment on account in July. Not sure what to do now other than to deduct the payments I have already made.

Dazed_and_confused

There was a problem discussed on the Accounting Web site where some people didn't (due to HMRC error) have POA created for 2018:19.

In which case my example would become,

2017:18 SA302 liability = £2,600
2018:19 SA302 liability = £3,000

31:01:2020 = 18:19 Balancing Payment = £3,000
31:01:2020 = 1st 19:20 POA = £1,500
31:07:2020 = 2nd 19:20 POA = £1,500

Once that is in place i.e. a few days after filing your return, you can see what has happened to the payments you have made and what is left to pay by 31 January.

Axel

So should I just do my own calculation, deduct POA 18/19 already made then add POA for 19/20and make a payment now?

Dazed_and_confused

You seem to be making life harder than it needs to be.

Why not just file your Self Assessment return, wait a few days and then check your online statement of account.

If it doesn't look like the example provided report back.

I suspect that your two payments will have been automatically allocated to the Balancing Payment due for 2018:19 but that depends on the exact figures.

Dazed_and_confused

Just read back through this chain and realised you have filed the return.

So find the statement of account section of your Self Assessment account and tells us what that now shows, there should probably be a Balancing Payment for 2017:18 along with Balancing Payment for 2018:19 and payments on account for 2019:20.

It is the charges you should be checking first, not what you have paid

And don't bother with the SA302 calculation at this stage.

Axel

OK, I will recap on the main points of my post and provide some notional numbers.

Tax return for 18/19 submitted 9/1/20.

Tax due for 18/19 year £3,000. I also need to make POA for 19/20 of £1,500 and so total due is £4,500 and a further £1,500 by 31st July.

Website tells me I owe and need to pay £4,500 by 31st January.

There is no mention anywhere of the POA payments I made in 2019, £1,000 in January and a further £1,000 in July.

There is only one statement available online (same on the statement history link) which is dated 10th June 2018 so obviously the payments made in 2019 are not shown.