Payment on account query - not being deducted 15 September 2022 at 9:16PM in Cutting tax 4 replies 92 views

dougens

Hi there 

I pay tax on income from property rental.

My tax bill for this fro 20-21 was £1086.

I paid this in Jan 22 and two installments of payment on account towards my 21-22 tax bill.  One in Jan 22 of £543 and one in July 22 of £543.

I have just done my tax bill for 21-22 and the taxable amount is in full £1250, without the payment on account (essentially a forward payment) deducted.

I have not yet submitted the form, is this deducted after submitting the form?

Thanks for any help.

Dazed_and_C0nfused

Firstly POA are not a "forward payment", one is paid several months into the tax year and the second several months after the tax year has ended.

Secondly POA are not part of your Self Assessment calculation so would not reduce the £1,250 figure.

Once you file your return you need to wait a few days then check your Self Assessment account and are likely to see something like this

2021:22 Balancing Payment £164.00 due on 31 January 2023

2022:23 1st POA £625.00 due on 31 January 2023

2022:23 2nd POA £625.00 due on 31 July 2023.

purdyoaten2

dougens said:

Hi there 

I pay tax on income from property rental.

My tax bill for this fro 20-21 was £1086.

I paid this in Jan 22 and two installments of payment on account towards my 21-22 tax bill.  One in Jan 22 of £543 and one in July 22 of £543.

I have just done my tax bill for 21-22 and the taxable amount is in full £1250, without the payment on account (essentially a forward payment) deducted.

I have not yet submitted the form, is this deducted after submitting the form?

Thanks for any help.

The tax ‘bill’ is indeed £1250. Somewhere one has to be able the determination of your tax liability for the year.  Now consider what you have paid towards it as Dazed has outlined. Your payments on account were £164 short of your ‘bill’. That is what is now due.

dougens

Thanks for replies.  
It's frustrating they couldn't just actual bill to include the POA, I saw the total bill and had a heart attack.
As long as the POA is deducted from my total tax bill for 2021-2.22 then that's fine.
Cheers 

Dazed_and_C0nfused

dougens said:

Thanks for replies.  
It's frustrating they couldn't just actual bill to include the POA, I saw the total bill and had a heart attack.
As long as the POA is deducted from my total tax bill for 2021-2.22 then that's fine.
Cheers 

They do "bill" the amount to reflect the POA.

You were asking about your Self Assessment calculation though, that simply shows you the tax payable (or repayable) for a particular tax year.  Any payments you have made are not part of that calculation.