HMRC isn't charging 'payments on account' despite tax being over £1K

user67340348

I posted a message on here previously relating to my self assessment, and how I thought it was charging me too much tax:
https://forums.moneysavingexpert.com/discussion/6369545/

Turns out I'd miscalculated my turnover, thanks to my accounting app making things pretty confusing (Freshbooks that is, the old version was so much better)

So with my updated turnover, I'm now due to pay £1140 tax.

But what I'm confused about is that it's not charging me any payments on account... not that Im complaining or anything – but aren't you meant to get charged PoA if your tax bill is over £1k?

Bear in mind I have a full time job too.

Also my self-employment earnings for the 22–23 year will be pretty much none-existent, so I'd much rather not pay PoA anyway as I'd only be getting it refunded further down the line.

Jeremy535897

You have probably already paid more than 80% of your total tax due through PAYE, in which case there are no payments on account due.

user67340348

Jeremy535897 said:

You have probably already paid more than 80% of your total tax due through PAYE, in which case there are no payments on account due.

Thanks, I did suspect that

But would that mean I've overpaid my tax through PAYE? As in my previous forum post (linked above) people said that I'd probably underpaid.

Jeremy535897

No. Suppose the proper tax on your PAYE income was £10,000, but you had only paid £9,500. The £500 underpayment and the £1,140 due on your self employed income would still be under 20% of your total liability, so no payment on account would be due.

Sandtree

user19860331 said:

Jeremy535897 said:

You have probably already paid more than 80% of your total tax due through PAYE, in which case there are no payments on account due.

Thanks, I did suspect that

But would that mean I've overpaid my tax through PAYE? As in my previous forum post (linked above) people said that I'd probably underpaid.

No, just means your PAYE income is notably larger than your self employed income... the 80% is of all the income tax owed across both income streams. 

user67340348

Great thank you both