# Question about paying tax in advance?

icicat
Forumite

130 Posts

**Forumite**
in Cutting tax

Hi all,

So my last tax return I was shocked having to additionally pay for the next tax year upfront. As you know it asks for two payments (to make them more manageable I guess, seeing that the money hasn't even been earnt yet!) so I paid the first instalment. Now the second payment is due end of this month. I might try to do my self assessment before it is due just in case my calculation is less than what they predicted (based on what I earnt last year)

So the question is, if I fill in my return and the calculation is less, can I just pay that in (minus the first payment I already paid in) and just ignore the amount of the second payment? Or does HMRC still require you to make the second payment and they either owe me any overpayments or I add any overpayment to next years tax bill?

I still find it so confusing and unfair that they ask for advance payment for next years tax

So my last tax return I was shocked having to additionally pay for the next tax year upfront. As you know it asks for two payments (to make them more manageable I guess, seeing that the money hasn't even been earnt yet!) so I paid the first instalment. Now the second payment is due end of this month. I might try to do my self assessment before it is due just in case my calculation is less than what they predicted (based on what I earnt last year)

So the question is, if I fill in my return and the calculation is less, can I just pay that in (minus the first payment I already paid in) and just ignore the amount of the second payment? Or does HMRC still require you to make the second payment and they either owe me any overpayments or I add any overpayment to next years tax bill?

I still find it so confusing and unfair that they ask for advance payment for next years tax

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## Replies

ForumiteFor example POA for 2021:22 are payable on 31 January 2022 and 31 July 2022. If you are on PAYE you could have paid some tax for 2021:22 on 6 April 🙂.

If you owe less then each POA will be amended to reflect that and anything overpaid in January will be allocated to the July POA.

If you post some rough figures it's easier to explain.

How much each POA currently is and what you think your Self Assessment return might show is due. Note you do

NOTdeduct the POA when considering your Self Assessment calculation.ForumiteForumiteSecond payment on account for 2021-22 will be due by 31 July 2022 £1,291.70

So I assume they are predicting what I owe for 21/22 tax year will be the same as 20/21. So say I have payed the second instalment, then I fill in my self assessment for 21/22. At the calculation does it automatically deduct what I have already paid in POA?

ForumiteWhat do you think the calculation will show in the place where it was £2583.40 last time?

ForumiteOn your final sentence - YOU deduct the payments on account made. The calculation is just that - a calculation of your final liability. As such it will not show the payments on account already made. You will have made payments towards that bill - take them into account.

ADIOS 🙋♂️

(Ha sido divertido)

ForumiteForumiteADIOS 🙋♂️

(Ha sido divertido)

ForumiteSo HMRC will add a small amount of interest to the £291.70 overpaid in January.

ForumiteADIOS 🙋♂️

(Ha sido divertido)

ForumiteSo say I do my tax return next month and I've already paid the second instalment, and my calculation comes to £1000 for 21/22. So now I have already paid £2,583.4 meaning I have overpaid tax, what happens with the overpayment?