Payments on Account

Mothman

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

Dazed_and_C0nfused

You/he can make a claim to reduce the 2022:23 POA but if it turns out the tax owed for 2022:23 was greater than you estimate (for any reason whatsoever) then the POA will be reinstated (up to a maximum of the original amount) and you will be charged late payment interest.

[Deleted User]

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

Mothman

[Deleted User] said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

[Deleted User]

Mothman said:

[Deleted User] said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Dazed_and_C0nfused

[Deleted User] said:

Mothman said:

[Deleted User] said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Maybe there will be a "silver" lining??

[Deleted User]

Dazed_and_C0nfused said:

[Deleted User] said:

Mothman said:

[Deleted User] said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Maybe there will be a "silver" lining??

Lost on me🤷‍♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k. 

Dazed_and_C0nfused

[Deleted User] said:

Dazed_and_C0nfused said:

[Deleted User] said:

Mothman said:

[Deleted User] said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Maybe there will be a "silver" lining??

Lost on me🤷‍♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k. 

https://www.att.org.uk/news-events/news/top-slicing-changes

[Deleted User]

Dazed_and_C0nfused said:

purdyoaten2 said:

Dazed_and_C0nfused said:

purdyoaten2 said:

Mothman said:

purdyoaten2 said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Maybe there will be a "silver" lining??

Lost on me🤷‍♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k. 

https://www.att.org.uk/news-events/news/top-slicing-changes

Well done! The whole thread centred around the fact that top slicing could now be claimed to preserve the personal allowance - should be of interest to the op.

Dazed_and_C0nfused

purdyoaten2 said:

Dazed_and_C0nfused said:

purdyoaten2 said:

Dazed_and_C0nfused said:

purdyoaten2 said:

Mothman said:

purdyoaten2 said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Maybe there will be a "silver" lining??

Lost on me🤷‍♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k. 

https://www.att.org.uk/news-events/news/top-slicing-changes

Well done! The whole thread centred around the fact that top slicing could now be claimed to preserve the personal allowance - should be of interest to the op.

Although maybe it's only the slice applicable to 2021:22 that took the op over £100k?

[Deleted User]

Dazed_and_C0nfused said:

purdyoaten2 said:

Dazed_and_C0nfused said:

purdyoaten2 said:

Dazed_and_C0nfused said:

purdyoaten2 said:

Mothman said:

purdyoaten2 said:

Mothman said:

Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this? 
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.

May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?

No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.

There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.

Maybe there will be a "silver" lining??

Lost on me🤷‍♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k. 

https://www.att.org.uk/news-events/news/top-slicing-changes

Well done! The whole thread centred around the fact that top slicing could now be claimed to preserve the personal allowance - should be of interest to the op.

Although maybe it's only the slice applicable to 2021:22 that took the op over £100k?

Possibly.