Self employed to employed

[Deleted User]

monaymadlol said:

Ok, still a little confused.

So my turnover increased for 22/23, first time I years. I owe around £4200 end of Jan. My 2nd POA for July is around £2500.

With expenses, I'm predicting my turnover (Inc income tax, NIC, Plan 1 student loan) to be £6000-8000 less for 23/24 due to winding up in Jan.

Based on this, can HMRC calculate how much I reduce the POA or is it a self calculation? If so, what sort of figures of reduction am I looking at (to save all that stuff with employment emergency tax code etc)

As I said earlier - it is a self-calculation. How could HMRC possibly know your tax liability for 2023/24 two months before the tax year end?

You say that the payment on account for July is £2500 which means that the one due in January is also £2500 - both are payments on account of 2023/24. You also appear to owe £1700 for 2022/23 - also payable in January 2024. 

It appears to me that you cannot know what to reduce your payments on account to at this stage (if at all). My advice would be to pay the £4200 in January (£1700 owed for 2022/23 plus first payment on account £2500 for 2023/24), submit your return as soon as possible after 6th April (you will need your P60 from your new employer) and adjust the payment on account due in July 2024 accordingly.

monaymadlol

That's true but things are a bit tight and I don't want to pay more in Jan than I need to, so if I can work out closer my liability, I may be able to shave off £500-1000 min. per POA to make life easier

[Deleted User]

There is no problem in doing that. Reducing each payment on account by £1000 means that you pay £3200 in January and, at this stage, £1500 in July. The £1700 balancing payment for 2023 is most important as a surcharge of 5% will be levied on any outstanding part of this on 28th February.