Wife's self assessment forgets paid on account amount

richd70

My wife has just filled in her self assessment (her only income is from being a shareholder in a family business), and the final calculation shows that based on the dividends she received during the year she owes £1,477.50 income tax. It suggests that she pays:

2019-20 balancing payment of £1,477.50
1st payment on account for 2020-21 due  31 January 2021 £738.75
Total due by 31 January 2021 £2,216.25

I just checked the previous year and it was similar, and included a 'first payment on account for 2019-20' of £500, however, the tax calculation for this year does not deduct the payment made 'on account' last January? Do I need to keep track of this - I would have thought they were able to? Should this year's tax not be £500 less on account that she has paid part already or am I missing something?
Many thanks

Dazed_and_C0nfused

No, you are mixing up her tax calculation (the liability for an individual tax year) and her self assessment account. Tax payments to HMRC made by an individual are never included in the tax calculation.

Once you file the return you need to wait 3 or 4 days and then view her account.  It will show how the 2019:20 liability is to be collected and any payments already made by her.  And the POA due for 2020:21.

Based on your post you will find the liability is split

1st POA 19:20 = £500
2nd POA 19:20 = £500
Balancing Payment 19:20 = £477.50

1st POA 20:21 = £738.75
2nd POA 20:21 = £738.75

[Deleted User]

The calculation, as above, has informed you that the tax liability is £1477.50 for 2019/20. That is to be settled by 31st January 2021. Now look at what has been paid towards that.

richd70

Dazed_and_C0nfused said:

No, you are mixing up her tax calculation (the liability for an individual tax year) and her self assessment account. Tax payments to HMRC made by an individual are never included in the tax calculation.

Once you file the return you need to wait 3 or 4 days and then view her account.  It will show how the 2019:20 liability is to be collected and any payments already made by her.  And the POA due for 2020:21.

Based on your post you will find the liability is split

1st POA 19:20 = £500
2nd POA 19:20 = £500
Balancing Payment 19:20 = £477.50

1st POA 20:21 = £738.75
2nd POA 20:21 = £738.75

Thanks, I understand now.