Self assessment April 2021

topazstar

I’ve just submitted my tax return for April 2021 and it’s showing a total sum owing of £1800 plus 50% of April 2022s tax(£900) so £2700 due January 2022. I’m confused because I thought I had already prepaid April 2021s tax in advance last year ( payment on account). But I’ve looked at 2020 tax bill and HMRC didn’t ask for payment on account for 2021. I’m worried as I was expecting to pay a bill of £900 in January 2022 and now it is £1800 more!!! Any idea why this has happened? I always pay in advance. 

Dazed_and_C0nfused

Payments on account aren't always required.

If your 2019:20 liability was less than £1000 or you had paid a large proportion of the tax due via PAYE you might not have had POA for 2020:21.

At least by filing early you have plenty of time to work out how to pay the additional amount. 

And if nearer the time you think the amount you will owe for 2021:22 is going to be less than £1800 then you can make a claim to reduce the 2021:22 POA.  For example if you think you will only have £800 to pay you can reduce each POA to £400.

[Deleted User]

topazstar said:

I’ve just submitted my tax return for April 2021 and it’s showing a total sum owing of £1800 plus 50% of April 2022s tax(£900) so £2700 due January 2022. I’m confused because I thought I had already prepaid April 2021s tax in advance last year ( payment on account). But I’ve looked at 2020 tax bill and HMRC didn’t ask for payment on account for 2021. I’m worried as I was expecting to pay a bill of £900 in January 2022 and now it is £1800 more!!! Any idea why this has happened? I always pay in advance. 

I am a little confused as you have stated that you have ‘already prepaid April 2021 tax in advance last year (payment on account)’ but ‘HMRC didn’t ask for payment on account for 2021’. If you have ‘prepaid’ or made payments on account for 2020/21 (which would be due January 2021 and July 2021) you should now be deducting these from the amount of £1800 that you say is owing. Remember you are looking at a calculation of your tax liability which does not reflect any payments that you have made towards this.