Self assessment POA

unholyangel

[Deleted User] said:

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.

And this is why I was asking OP for clarification, since it's a common mistake people make when submitting their return (getting liability calculation confused with balancing payments and payments on account). 

Not the first convo I've had where someone has their terminology mixed up and underestimated how much they were due to pay. 

[Deleted User]

unholyangel said:

purdyoaten2 said:

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.

And this is why I was asking OP for clarification, since it's a common mistake people make when submitting their return (getting liability calculation confused with balancing payments and payments on account). 

Not the first convo I've had where someone has their terminology mixed up and underestimated how much they were due to pay. 

Yes I can only agree. However, as payments on account amount to £3750 each for 2020/21, it appears that the total liability for 2019/20 was indeed £7500 and I asked the op to clarify that.

PhilLong

Thanks. I have now submitted the return. The calculation states 7000 balancing payment plus 3500 1st POA Jan 21.

 But when looking at the current position it states 3500 1st POA Jan 21, 3500 2nd POA July 21 and 1250 balancing payment Jan 21.

 Taking into account 1st POA in July 20 of 2900 I was expecting a balancing payment of 4100 (7000-2900) which is stated in tax year overview 20. Does anyone know why the balancing payment in the current position does not match the balancing payment in the tax overview?

Dazed_and_C0nfused

The "calculation" cannot possibly know what is due when, it is simply an amount due a particular tax year.

That feeds through to your self assessment account.  That is what you need to be looking at.

If we assume £7,050 is your total liability for 2019:20 then the account would look like this.

1st POA 19:20 = £2900
2nd POA 19:20 = £2900
Balancing Payment 19:29 = £1250

1st POA 20:21 = £3525
2nd POA 20:21 = £3525

NB.  The 1st POA for 19:20 would not have been due in July 2020

PhilLong

Thanks. On my current position there are two totals. One total is the 2900 which is my 2nd POA from July 20 which I deferred. The other total is 8250 which includes 1st POA 3500 for Jan 21, 2nd POA 3500 for July 21 and balancing payment 1250.
So for January do I need to pay 7650 based on:
2900 2nd POA July 20 plus
3500 1st POA Jan 21 and
1250 balancing payment

Is there somewhere which shows the total amount due in January?

Dazed_and_C0nfused

Your Self Assessment statement of account should show the amount due.

It will be broken down into different elements such as POA and Balancing Payment.

You need to pay everything which has a due date of 31 January 2021 or earlier.

PhilLong

Okay but HMRC only provide statements for tax returns submitted before 6th January. As I have always done my tax returns in mid January I have never received any statements before.

Currently my balance is showing as 4750 to pay by January. But it also separately states 2900 is overdue for the deferred 2nd POA July 20. Presumably I need to pay both by January?

Dazed_and_C0nfused

You should see a live statement on your online account.

Yes, to avoid interest you need to pay anything with a due date of 31 January or earlier by 31 January.

Interest will start to be charged on the everything, even the 19:20 2nd POA after that.

PhilLong

Where can I find the live statement? Which section is this under on the HMRC website?