tax question

FrankR

hello

self employment tax question...

- I must pay the last payment on account (other 50%) for 19-20 tax bill by end of July 2021.  this payment will cover 20-21 tax bill 

if I submit 20-21 tax bill by end of July, will hmrc recalculate this payment on account based on actual figures...

and will I have to pay the 1st payment on account for 21-22 tax bill at the same time...?

meaning.. by end of July 2021, I will pay last payment on account for 19-20 tax bill (meaning that year will be paid off in full)  PLUS the first payment on account for 21-22 tax bill?

will HMRC give me option to pay all this tax in monthly instalments due to the pandemic...? 

thank you.

sheramber

FrankR said:

hello

self employment tax question...

- I must pay the last payment on account (other 50%) for 19-20 tax bill by end of July 2021.  this payment will cover 20-21 tax bill 

if I submit 20-21 tax bill by end of July, will hmrc recalculate this payment on account based on actual figures...

 yes. if they should be less they will reduce them. If the total tax due is more than the POAs then the balance due will be payable by 31 January 22.

and will I have to pay the 1st payment on account for 21-22 tax bill at the same time...?

meaning.. by end of July 2021, I will pay last payment on account for 19-20 tax bill (meaning that year will be paid off in full)  PLUS the first payment on account for 21-22 tax bill?

No, the payments on account for 21-22 will be due as usual - 1st by 31Jan 22 and second by 31 July 22.

will HMRC give me option to pay all this tax in monthly instalments due to the pandemic...? 

thank you.

You can always request a payment plan.

https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments

If you cannot pay the POA due 31 July 21 you will be charged interest on late payment.

For the tax due by 31 January 22 you can start paying monthly instalments now so that it is paid by the due date.

See answers in bold.

[Deleted User]

The op is somewhat confused by the tax years to which the payments on account relate. If each mention of 19-20 was replaced by 20-21 it would read accurately. 

Payments on account for 2019/20 were due on 31st January 2020 and 31st July 2020 with any balance owing for that year payable on 31st January 2021.


Payments on account for 2020/21 were due on 31st January 2021 and 31st July 2021 with any balance owing for that year payable on 31st January 2022. 

And so on ...........