Tax Payments on Account Question 1 January at 1:41PM in Cutting tax 5 replies 93 views

jmeredith123

Hi there,

I'm self employed and have made several payments on account (see below Payment Allocation).

However, having just completed my tax return I can't see these amounts deducted in my Calculation Summary (also below). What am I missing? I have no idea what the last paragraph means or how I check that.

Grateful for any insight.

Dazed_and_C0nfused

POA are nothing to do with you tax calculation.

The calculation shows your liability for a specific tax year and includes tax deducted at source, not payments you have personally made.

Once you have filed your return your account should be updated to show a Balancing Payment (payable 31:01:2023) of £2,651.70.

And two POA for 2022:23 of £2,040.64 (payable 31:01:2023 and 31:07:2023).

The above assumes that there is a second POA for 2021:22 of £714.79 which you haven't shown.

purdyoaten2

jmeredith123 said:

Hi there,

I'm self employed and have made several payments on account (see below Payment Allocation).

However, having just completed my tax return I can't see these amounts deducted in my Calculation Summary (also below). What am I missing? I have no idea what the last paragraph means or how I check that.

Grateful for any insight.

Read carefully the middle sentence in the last paragraph. The tax calculation is just that - a calculation of your liability. How it is paid is an entirely different matter.

jmeredith123

OK thank you both, however I'm still a bit unclear.

I guess the question I'm asking is how much do I have to pay, i.e. is it down to me to keep track of what I have paid on account or is it automatically altered to the correct amount?

purdyoaten2

The amount that you have to pay is £6121.92 less the payments on account made in January 2022 and July 2022. It would appear that this is £6121.92 less (£714.79 x 2) which works out at £4692.34. Wait a day or so after submission and check your account on the self-assessment page. 

I presume that you have no reason to believe that your liability for 2022/23 will be lower than 2021/22 and, therefore, have no sound reasoning for reducing the payments on account for 2022/23.

jmeredith123

purdyoaten2 said:

The amount that you have to pay is £6121.92 less the payments on account made in January 2022 and July 2022. It would appear that this is £6121.92 less (£714.79 x 2) which works out at £4692.34. Wait a day or so after submission and check your account on the self-assessment page. 

I presume that you have no reason to believe that your liability for 2022/23 will be lower than 2021/22 and, therefore, have no sound reasoning for reducing the payments on account for 2022/23.

Got it, thank you!