Self Assessment

Dazed_and_C0nfused

kjs31 said:

Dazed_and_C0nfused said:

Although your 2025-26 might only be £500 POA for that tax year are determined by the previous years return.  So you could make a claim to reduce each POA but only to £250 each.  If the liability for 2025-26 was actually just £500 then no POA would be required for 2026-27.

And likewise if you'd 2026-27 return showed a huge liability that might require POA for 2027-28 but not 2026-27 as it's the 2025-26 return which determines the need for POA for 2026-27.

Thanks, that’s helpful. I suspect that I will always owe a chunk of tax from savings as long as interest rates are paying something reasonable. Am I therefore destined to complete a tax return forever? At least I will only be losing 20% of it from 25/26. 

As things stand yes.  But HMRC/government seem to be want to reduce the number of people who need to complete tax returns (people new to HICBC was one group there was an announcement about last year) so it could well change at some point.