Payments on account - 2nd year

chilly1

Tax bill from self employment 

2019 - 2020 = £2710 this was my first year filling in the tax form

2020 - 2021 = I already paid the "payments on account" back in Jan and June £1275 x2 = £2550

Have started to fill out my tax return for the second year of self employment. 

Near the end the calculations are

2020 - 2021 = due to be paid £4664

2021 - 2020 = £2252 x2 "payments on account" 

Each years income etc is roughly the same looking at the numbers above does it look correct?

I havent submitted the form yet. Earn approx £25k on PAYE and £25k self-employed minus £6k expenses. 

What i am not sure is have i filled the tax return correctly?

What about the "payments on account" that i have already paid, i havent seen it deducted from this years tax bill.

Or when it gets processed it will be deducted from that £4664? 

Dazed_and_C0nfused

Payments on account are not part of your Self Assessment calculation.

You file the return showing the tax/NI/HICBC/student loan due for the year and then your Self Assessment statement of account is updated a few days later.

Based on what you have posted you will have the following entries for 2020:21 & 2021:22 if you check your account a few days after filing the return.

2020:21
1st POA 31:01:2021 = £1,275
2nd POA 31:07:2021 = £1,275
Balancing Payment 31:01:2022 = £2,114

2021:22
1st POA 31:01:2022 = £2,252
2nd POA 31:07:2022 = £2,252

It's impossible to know if you have completed the return correctly.

[Deleted User]

A very common question. 

Payments on account of 2020/21 tax liability were made in January and July 2021. That liability is only determined upon submission of the 2020/21 tax return. 

The answer to the question in the last sentence is ‘Yes’. 

Presumably there is some reason why the POA’s for 2021/22 are not £2332.

Dazed_and_C0nfused

Class 2 NIC would be my guess 

[Deleted User]

Dazed_and_C0nfused said:

Class 2 NIC would be my guess 

And a pretty good one!