Capital Gains Tax submitted via Self Assessment - yet not shown as due... when to pay?

mrrossi

Hi all

I closed a business (LTD) last year and I included this under the CGT section of my Self Assessment for 20/21 which I completed a couple of months back.

However, the statements issued by HMRC and the 'payment due' info in my online account don't include this in the amounts due for Jan 31 and Jul 31. It's not shown.

Googling when it's due I would assume it's Jan 31st but just a bit confused why it doesn't show here?

I.e.

I can view my submitted return and the "view your calculation" and it shows (example numbers) that total due is £10,000 (which matches my "Income and Capital Gains Tax due" amount).

Then it says first POA is £2500 and "Total to be added to Self Assessment account due by 31 January 2022" as £12,500.

Yet the total "becoming due for payment" is only £5000 and the statements say £2500 for the 1st POA 31st Jan and 2nd POA is also £2500 by 31st Jul.

So where's the CGT / when is this payable?

Thanks!

Ross

[Deleted User]

What did you pay by way of payment on account for 2020/21 in January 2021 and July 2021, if any?

And how much of this fictitious £10000 is solely CGT?

Jeremy535897

Your payments on account are based on your income tax bill, not capital gains, so you wouldn't expect the payments on account to reflect the capital gains tax bill, but that bill is due by 31 January 2022.

[Deleted User]

Jeremy535897 said:

Your payments on account are based on your income tax bill, not capital gains, so you wouldn't expect the payments on account to reflect the gcapital gains tax bill, but that bill is due by 31 January 2022.

Yes - of course - which is why I sought the split. However, I can’t work out why the ‘becoming due’ amount is £5000 if the tax liability is £10000 (including £5000 for CGT) unless there was POA in January and July 2021. 

If we had real figures….,

As it stands it could be:

2020/21 - POA made - 2 x £2500. Balancing payment £5000. 

2021/22 - POA due 2 x £2500 

mrrossi

Thanks for the responses - and sorry too, I really had got confused here. CGT is red herring.

Looked back through the numbers and my return. GCT here is minimal (£164.90). It's the total tax due I'm confused about:

Income Tax due £26,866.80

minus Tax deducted

From all employments, UK pensions and state benefits

£13,036.00

Total tax deducted

£13,036.00

Total Income Tax due

£13,830.80

Taxable capital gains

£1,649.00

Business Asset Disposal Relief and or Investors' Relief gains

£1,649.00

x 10%

£164.90

£164.90

Capital Gains Tax due

£164.90

Income and Capital Gains Tax due

£13,995.70 

(complex return as LTD company with Dividends income overlapped half a year in a permanent position being taxed plus income from property rental)

It's the "balancing payment" that I'm confused about:

2020-21 balancing payment

£13,995.70

1st payment on account for 2021-22 due 31 January 2022

£6,915.40

Total due by 31 January 2022

£20,911.10

Note that I then also completed an adjustment to the POA's as I will not earn so much this tax year (no dividends now LTD company closed) and they were reduced to £2,810.90 each.

In the calculations it now shows:

2020-21 balancing payment £13,995.70

1st payment on account for 2021-22 due 31 January 2022 £2,646.00

Total due by 31 January 2022

So my SA account now says:

You have a total of £5,456.90 becoming due for payment

On another page it says: You owe £2,810.90.

!

So where's the "balancing payment" gone other than on my own submitted calculations?

I.e. I've not an "invoice" anywhere asking me to pay the "balancing payment". Should I?

I get really confused about POAs... does last years POAs already 'cover' the balancing payment? (I can only hope!)

I'd estimated them that year (19-20) and got them wrong... so as soon as I'd submitted this tax return (20-21) they issued a correction to my POAs and I had to pay an extra 3883.59 in November (on top of the £5k POA I'd paid 31st July this year and £5k POA in Jan*).

Hope that all makes sense...

Thanks again
Ross

*Wait...  LIGHT BLUB MOMENT!!! .... 5K + 5K + the adjusted 3883.59 makes £13.9k - i.e. the "balancing payment". Have I already paid this then via my POAs???

[Deleted User]

What did you pay by way of payment on account in January and July 2021?

Edit as you amended your post.

The position is - 

2020/21 liability :

Total due 13995 70 less paid by way of POA 13883.59 - due to pay 112.11.

2021/22 - 

1st POA 2646 due. Total due 31January is 2646 plus 112.11 which is 2757.11 plus a bit of interest as a result of reducing POA by too much.

Does thus sound better?

mrrossi

Brilliant!! Ha, much better... thank you! Much appreciated