Self assessment POA

PhilLong

Hi

In 2020 I deferred the 2nd July 2020 POA of 2500 but paid the 1st POA of 2500.

My self assessment calculation for 19/20 is 7500 plus 3250 1st POA Jan 21. 

My query is can the 2nd POA of 2500 which I deferred in July 20 be ignored and will not need to be paid in this case? Just the remaining 5000 (7500-2500 less 1st POA Jan20 paid) plus 3250 for 1st POA Jan21. So total to pay is 8250?

Once I submit the self assessment how long does it take for the final calculation to appear taking into account POAs and where can I find it?

[Deleted User]

Well - it’s not really ignored! Your tax bill for 2029/20 is £7500 less already paid £2500 by way of payment on account leaving £5000 due by 31 Jan. However interest will be charged on the late payment/ deferral of the second payment on account not paid in July.

Your payment on account for 2020/21 is also due. Is it £3250 or £3750? It is normally half of the previous year’s liability unless CGT or student loan is involved.

Check the statement section of the site to see your current position, including the interest added, in a few days.

Dazed_and_C0nfused

[Deleted User] said:

Well - it’s not really ignored! Your tax bill for 2029/20 is £7500 less already paid £2500 by way of payment on account leaving £5000 due by 31 Jan. However interest will be charged on the late payment/ deferral of the second payment on account not paid in July.

Your payment on account for 2020/21 is also due. Is it £3250 or £3750? It is normally half of the previous year’s liability unless CGT or student loan is involved.

Check the statement section of the site to see your current position, including the interest added, in a few days.

I though HMRC weren't charging interest providing the second 2019:20 POA was paid by 31 January 2021?

Jeremy535897

Dazed_and_C0nfused said:

[Deleted User] said:

Well - it’s not really ignored! Your tax bill for 2029/20 is £7500 less already paid £2500 by way of payment on account leaving £5000 due by 31 Jan. However interest will be charged on the late payment/ deferral of the second payment on account not paid in July.

Your payment on account for 2020/21 is also due. Is it £3250 or £3750? It is normally half of the previous year’s liability unless CGT or student loan is involved.

Check the statement section of the site to see your current position, including the interest added, in a few days.

I though HMRC weren't charging interest providing the second 2019:20 POA was paid by 31 January 2021?

No they are not charging interest, provided that the 2019/20 liability is paid in full by 31 January 2021.

PhilLong

Thanks. Yes the 1st POA for Jan 21 is 3750. HMRC agreed not to charge interest on all deferred July 20 POAs. So my total bill will be 8750 for 20/21?

Dazed_and_C0nfused

You are getting your tax calculation - the liability for a particular tax year - mixed up with your Self Assessment account.

If you file the return and then check your Self Assessment account in a few days you will see what needs is due for each of these two years,

Likely to be this

19:20 1st POA £2,500

19:20 2nd POA £2,500

19:20 Balancing Payment £2,500

20:21 1st POA £3,750

20:21 2nd POA £3,750

[Deleted User]

Jeremy535897 said:

Dazed_and_C0nfused said:

[Deleted User] said:

Well - it’s not really ignored! Your tax bill for 2029/20 is £7500 less already paid £2500 by way of payment on account leaving £5000 due by 31 Jan. However interest will be charged on the late payment/ deferral of the second payment on account not paid in July.

Your payment on account for 2020/21 is also due. Is it £3250 or £3750? It is normally half of the previous year’s liability unless CGT or student loan is involved.

Check the statement section of the site to see your current position, including the interest added, in a few days.

I though HMRC weren't charging interest providing the second 2019:20 POA was paid by 31 January 2021?

No they are not charging interest, provided that the 2019/20 liability is paid in full by 31 January 2021.

Excellent- didn’t know that. 

unholyangel

Where did you see the 7500? If this was your balancing payment you may find you have 2500 to add on, rather than deduct it. So would be due to pay 2500 + 7500 + 3250. 

[Deleted User]

unholyangel said:

Where did you see the 7500? If this was your balancing payment you may find you have 2500 to add on, rather than deduct it. So would be due to pay 2500 + 7500 + 3250. 

Don’t get that. The op states that his calculation shows £7500, not the balancing payment. Calculations do not take payments on account into account.

[Deleted User]

PhilLong said:

Thanks. Yes the 1st POA for Jan 21 is 3750. HMRC agreed not to charge interest on all deferred July 20 POAs. So my total bill will be 8750 for 20/21?

The total amount outstanding for 2019/20 is 5000. This is payable on 31st January. The first payment on account for 2020/21 is £3750 is due on the same day. Total payable on 31st January is 8750.

Jeremy535897

purdyoaten2 said:

Jeremy535897 said:

Dazed_and_C0nfused said:

purdyoaten2 said:

Well - it’s not really ignored! Your tax bill for 2029/20 is £7500 less already paid £2500 by way of payment on account leaving £5000 due by 31 Jan. However interest will be charged on the late payment/ deferral of the second payment on account not paid in July.

Your payment on account for 2020/21 is also due. Is it £3250 or £3750? It is normally half of the previous year’s liability unless CGT or student loan is involved.

Check the statement section of the site to see your current position, including the interest added, in a few days.

I though HMRC weren't charging interest providing the second 2019:20 POA was paid by 31 January 2021?

No they are not charging interest, provided that the 2019/20 liability is paid in full by 31 January 2021.

Excellent- didn’t know that. 

The original statement was unclear. The update with the grey bar now makes it clear:
https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19