SA tax return - partnership income - Payment on account COVID/SEISS grants

justwhat

Tax return - Covid grants effecting payments on account

Just completing online tax return. Were should the covid property grants be entered , because if it goes in other income. The system wants payment on account due to it forecasting earnings for next year.

Tried including it in partnership income, tried including it in seiss income(but it does not let you alter seiss income)

Only reason we are paying tax this year is due to property grants. 

Dazed_and_C0nfused

Do you mean your 2020:21 liability is sufficient that POA are required for 2021:22?

justwhat

Dazed_and_C0nfused said:

Do you mean your 2020:21 liability is sufficient that POA are required for 2021:22?

yes , but only because i got 17k in grants that i will not get next year.

I did not think they were taking POA based on profit increase due to covid grants.

Dazed_and_C0nfused

POA are based on the liability of the previously tax year.

If the liability in 2020:21 is high enough then POA will be due for 2021:22.

If you believe that the amount due for 2021:22 will be less than the POA then you can make a claim to reduce the 2021:22 POA.  Remembering that if you reduce them by too much you will be charged interest on anything paid late.

For example if your 2021:22 POA are £3,000 each and you think the total amount due will only be £500 then you can reduce each POA to £250.

You may be better leaving any claim to reduce until nearer the end of the calendar year when you will likely have a better idea of the actual position for 2021:22.

Jeremy535897

It is part of the partnership income, assuming it is a partnership receipt rather than a receipt belonging to a partner individually. If the partnership income is £85,000 or less, the property grants are included in the turnover figure in box 3.24 of SA800. If the income is more, it is shown as part of the figure in box 3.50.

You can make a claim to reduce payments on account:
https://www.gov.uk/government/publications/self-assessment-claim-to-reduce-payments-on-account-sa303

justwhat

Yes i got that regarding reducing payment.

i was hoping it would be taken into consideration like it does with  seiss.(before calculating POA)