Self-assessment, underpaid tax, deadline for payment if PAYE box ticked?

Roseybug

Hi,

I'm mainly PAYE, but in self-assessment as higher-rate taxpayer, professional subscriptions, gift aid etc.
For 2021-2 I was overpaid child benefit (HICBC) so need to pay back £1300. I stopped claiming child benefit partway through that year.

I have a question about timings and deadlines.

I completed by 2021/2 self-assessment form online in early Dec 2022, and used the option to pay the extra by having 2023-4 tax code adjusted. 
The "View your Calculation" says that "Total due by 31 January 2023" = £1300

My tax code has already been adjusted (received P2 today) and my December 2022 online payslip shows the new tax code and the net amount is £200 less than usual. My P2 also estimates I will owe another £500 for 2022-3 (not clear exactly how calculated, but assuming it's because gift aid and professional subscription amounts are not identical year-to-year).

My question - the "View your Calculation" implies I need to pay £1300 by end-Jan 2023, but I'm now also paying back via my tax code - so do I actually need to pay HMRC anything by 31 Jan 2023, or can I safely ignore that? I don't want to get fines/fees.

Thanks

Dazed_and_C0nfused

You are mixing up two different things.

The £1,300 owed for 2021:22 won't be collected until 2023:24.

Roseybug

Thanks for the response. I'm still a bit confused.

So the £200/month from this Dec-March 23 is an in-year correction for 2022-3?

And from April 2023 I will get another new tax code with which I will pay back the owed £1300 over the next 12 months?

And most importantly - am I ok to not pay anything directly to HMRC before the deadline 31 Jan 2023?

[Deleted User]

Roseybug said:

Thanks for the response. I'm still a bit confused.

So the £200/month from this Dec-March 23 is an in-year correction for 2022-3?

And from April 2023 I will get another new tax code with which I will pay back the owed £1300 over the next 12 months?

And most importantly - am I ok to not pay anything directly to HMRC before the deadline 31 Jan 2023?

All three assumptions correct!

Dazed_and_C0nfused

Roseybug said:

Thanks for the response. I'm still a bit confused.

So the £200/month from this Dec-March 23 is an in-year correction for 2022-3?

And from April 2023 I will get another new tax code with which I will pay back the owed £1300 over the next 12 months?

And most importantly - am I ok to not pay anything directly to HMRC before the deadline 31 Jan 2023?

Yes, that's how things should happen.

But if your Self Assessment statement shows £1300 is currently still payable in January 2023 then you should contact HMRC within the next week and make sure that it will be collected via your 2023:24 tax code.  

Once that has been arranged your Self Assessment account will show an adjustment meaning the £1300 doesn't have to be paid direct.

And sometime in January or February you will get a new tax code for 2023:24.

Phoning just before 8am is the best time to avoid waiting.

[Deleted User]

Many are confused by the ‘tax calculation’ and the ‘account statement’ - two different things. 

‘Viewing your calculation’ will always show £1300 as that is the outstanding liability for the year. 

How it is paid, in this case via 2023/24 code, is a separate matter as Dazed has explained and, in time, will disappear from the ‘statement of account’. But, given how close we are to 30th December, the advice to make sure is also sound.

Roseybug

Thank you both. I have gone into my online "Personal Tax Account" and found the following pages, which seem to be clear enough once you click through and find them. Have screenshotted for my records. 

Self Assessment

Self Assessment Unique Taxpayer Reference (UTR): XXXXXX

Your returns

You have filed your return for tax year 2021 to 2022.

• View Self Assessment return for tax year 2021 to 2022
• Amend Self Assessment return for tax year 2021 to 2022
• Get SA302 Tax Calculation for tax year 2021 to 2022

Your balance

• No tax is due at the moment

And on another linked page:

Information as at 22 Dec 2022
XXXXXXXXXX
Unique Taxpayer Reference (UTR): XXXXXXXX

Current position

You have nothing to pay.

[Deleted User]

Roseybug said:

Thank you both. I have gone into my online "Personal Tax Account" and found the following pages, which seem to be clear enough once you click through and find them. Have screenshotted for my records. 

Self Assessment

Self Assessment Unique Taxpayer Reference (UTR): XXXXXX

Your returns

You have filed your return for tax year 2021 to 2022.

• View Self Assessment return for tax year 2021 to 2022
• Amend Self Assessment return for tax year 2021 to 2022
• Get SA302 Tax Calculation for tax year 2021 to 2022

Your balance

• No tax is due at the moment

And on another linked page:

Information as at 22 Dec 2022
XXXXXXXXXX
Unique Taxpayer Reference (UTR): XXXXXXXX

Current position

You have nothing to pay.

That’s perfect. You owe £1300, as per your tax calculation but don’t have to pay it on 31st January.