2023/24 self assessment and debt owed from 2021/22

MrPez

Hi, 

Just drafted my self assessment and it lists an amount owed from previous years. The amount matches the total owed from my 2021/22 return.

I had understood that previous amounts due were all collected via my tax code. 

Last year I was due a rebate which was given in June. 

In my tax account it says the balance due is zero (I've not actually submitted the 2023/24 return yet). 

Can this be right? I don't get why they would issue a refund last year if there was outstanding debt from the year before. I also don't understand how the balance on my account can be zero if they then introduce an amount owed in my tax return? 

I feel I'm going to have to join the helpline queue... 

Dazed_and_C0nfused

You owed some Self Assessment tax for 2021-22.

This is usually paid direct to HMRC or collected Vai your 2023-24 tax code.

If it was included in your 2023-24 tax code then you need a corresponding entry on your 2023-24 tax return.

You are NOT paying this tax twice.

Say you had a perfectly clean position for 2023-24 and had paid the exact correct amount plus the amount owed for 2021-22.

If this entry didn't exist you would get the extra back when you completed your 2023-24 return.

MrPez

Thank you, that makes sense. 

However, if there were amounts outstanding from previous years, should they not appear in my statement of account on HMRC? 

Dazed_and_C0nfused

MrPez said:

Thank you, that makes sense. 

However, if there were amounts outstanding from previous years, should they not appear in my statement of account on HMRC? 

They aren't classed as "outstanding" though as they were included in your tax code.

MrPez

That amount should have been collected through my tax code 2022/23, not 23/24 - that's why it doesn't make sense to me. 

And I can't even get through to the tax office... 

BoGoF

Why do you think it would have been collected in 22/23? When was your 21/22 liabilty established (when was your return submitted). Even if submitted well before the deadline of 31/1/23 you are already well into the 22/23 tax year so unlikely to be collected.

Log on to your Personal Tax Account to see what your code was and it what it included.

Dazed_and_C0nfused

An amount due under Self Assessment for 2021-22 would never be collected via your 2022-23 tax code.

It works on a 3 year cycle,

2021-22 - underpayment arises
2022-23 - tax return for 2021-22 is submitted and underpayment quantified
2023-24 - tax owed for 2021-22 is (sometimes) included in tax code

MrPez

That makes sense, much appreciated. 

I've always done my return straight away and had thought my tax code changed straight away too but I guess not. 

Dazed_and_C0nfused

MrPez said:

That makes sense, much appreciated. 

I've always done my return straight away and had thought my tax code changed straight away too but I guess not. 

Your tax code is often updated straight after filing a Self Assessment return.

But that is to keep the current tax year upto date (2022-23 in the example above), not to start collecting tax from the prior year.