Self assessment 23/24 - asking for tax for 24/2025 by jan 31st

UnsureAboutthis

Hello all,

We don't have a big income and living off pensions and a small income from a BTL

We are both just over 60 yrs of age.
my income is inc building society interest 19k (inc the 2k gross interest from a savings account)

First question. My income was less than my wife's previous years so I gave her the 10% allowed. This year I ticked the 'NO' box, but it is still showing as though I am giving her the tax allowance.

Second question. I've been asked to pay just under 1500 quid for 2023/4 by Jan 31st 2025 - that is fine
However, the tax people also want another 750 for 2024/5 paid by the above date, IE Jan 31st 2025:

My wife income is about 2k less and she is in the same boat

On the SA questionnaire, they do ask if we expect the income from BTL to continue into 2024/2025 and we said yes

Can you help?

HMRC help line now closes at 6pm I learned today - can you help?.

Phoenix72

Normal process where you have a liability over £1,000 for a tax year that you will have to make POA's for the following year. If you expect your final 24/25 liabilty to be less than £1500 you can reduce them to what you think is more accurate.

Dazed_and_C0nfused

Contrary to your post you haven't actually asked any questions.

What is it you want to know?

sheramber

As your tax bill is more than £1000 then you are required to make payments on account towards your next year's tax bill.

These payments are based on your tax bill  with 50% to be paid by 31 January and 50% by 31 jauly.

If you think your tax bill be less than £1500 next year you can request to reduce your payments on account but be aware that of you reduce them too far or incorrectly  the original charge will reinstated and you will be charged interest  on the inderpaid amount.

Once your 24/25 return is processed  you will have paid £1500 twards the tax due and will only have any balancing payment  of the differnce in Janaury  26.

if your tax bill is less your payments on account wil be amended accordingly  to give credoit for what you have paid.

https://www.gov.uk/understand-self-assessment-bill/payments-on-account

The question about marriage transfer allowance in your return referred to 23/24.

When you cancel ot takes effect from the end of the tax year .  If you cancel it now it will still apply for 24/25 but will cancel from 5 April 2025.

You will need to advise HMRC  that you want to cancel. You can do this online as advised in this link.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Ayr_Rage

As @sheramber has posted, there will be TWO payments on account, one at the end of January and the second due by the end of July. Make sure you budget for both!

Albermarle

my income is inc building society interest 19k (inc the 2k gross interest from a savings account)

Not sure what this means. All savings account interest ( whether from a building society account, or not) is paid gross. Unless the money is held within Cash ISA's, which again are not exclusive to building societies.

UnsureAboutthis

Thank you @Phoenix79_2
@sheramber
@Ayr_Rage
@Albermarle

You have saved me hours trying to get through to the HMRC. Many thanks.

UnsureAboutthis

Hello again
Looking at my 2023/24 tax returns/SA - HMRC wants payments as follows

Year 2023/24, pay by Jan 31st - I get that and we often pay this now, or soon

What I don't understand is the tax year ends April 2025. The first pay of this
which is about the half of tax year 2024 has to be paid BY Jan 31st 2025,
This is what I don't understand, Then another payment of the other half for tax year Aril 2025
by 31sy July, 2025

I don't understand why we are being told to pay for tax yer ending April 2025, pay
by Jan 31st, 2025, half of the money and then the other half by July 31st 2025

Ithought we had to pay the april2024 by 31st Jan 2025, I get that and then half of the April 2025 by July
31st 2025 and not by Jan 31st 2025

Thanks again

Dazed_and_C0nfused

UnsureAboutthis said:

Hello again
Looking at my 2023/24 tax returns/SA - HMRC wants payments as follows

Year 2023/24, pay by Jan 31st - I get that and we often pay this now, or soon

What I don't understand is the tax year ends April 2025. The first pay of this
which is about the half of tax year 2024 has to be paid BY Jan 31st 2025,
This is what I don't understand, Then another payment of the other half for tax year Aril 2025
by 31sy July, 2025

I don't understand why we are being told to pay for tax yer ending April 2025, pay
by Jan 31st, 2025, half of the money and then the other half by July 31st 2025

Ithought we had to pay the april2024 by 31st Jan 2025, I get that and then half of the April 2025 by July
31st 2025 and not by Jan 31st 2025

Thanks again

No, the first time POA are necessary the time frames are like this,

Tax year 1
Pay Balancing Payment by 31 January after the end of tax year 1.

Tax Year 2
Pay first POA by 31 January after the end of tax year 1
Pay second POA by 31 July after the end of tax year 2
Pay Balancing Payment (if necessary) by 31 January after the end of tax year 2

Not really sure why it was ever decided you had so long to pay really, by the time you make the first POA roughly 9 months of the tax year have passed whereas ots of people on PAYE start paying their tax a few days into the (tax) year!!!!

UnsureAboutthis

we pay in one go not dribs and drabs

Ayr_Rage

@UnsureAboutthis you'll have to pay when HMRC decide if your circumstances require Payments on Account.