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

[Deleted User]

UnsureAboutthis said:

we pay in one go not dribs and drabs

You pay according to the rules which have not changed since 1997/98. 

If you have an outstanding liability of more than £1000 for 2023/24 (and have not paid more than 80% of your total liability under deduction) you must settle that liability on 31st January 2025. In addition you MUST make payments on account in respect of your liability for 2024/25. They are due on 31st January 2025 and 31st July 2025. 

For example - tax due for 2023/24 - £5000. Tax due for 2024/25 is £6000.

Payments:

2023/24 - Total due by 31st January 2025 - £5000

2024/25

- First payment on account also due 31st January 2025 - £2500. (Based on 50% of 2023/24)

   Second payment on account due 31st July 2025 - £2500

Balance payable on 31st January 2026 - £1000

2025/26

- First payment on account £3000 also due on 31st January 2026.

Second payment on account due 31st July 2026 - £3000. 

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

jaceyboy

You can also ask HMRC to look at this and not take the payment in advance, its what I have done

sheramber

UnsureAboutthis said:

we pay in one go not dribs and drabs

https://www.legislation.gov.uk/uksi/1996/1654/made#:~:text=Section%2059A%20of%20the%20Taxes%20Management%20Act%201970%20(inserted%20by,of%20that%20section%20are%20satisfied.

[Deleted User]

jaceyboy said:

You can also ask HMRC to look at this and not take the payment in advance, its what I have done

Firstly - it’s not a payment in advance, particularly when the second payment is almost four months after the end of the tax year. You can reduce the payments on account to whatever you wish BUT if it transpires that you reduced by too much or to zero, and you were incorrect to do so, you will be charged interest and, possibly, penalties. Do not reduce unless you believe that your liability will be less than the total of the two payments on account. 

There is no ‘ask HMRC to look at this’ - it is initiated by you on the portal. 

UnsureAboutthis

Ayr_Rage said:

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

The payments are required as per my previous post. We always paid off the total bill in April. This time we pay it all off in the next week of two inc the additional amount for paying the 23/24 off now, possibly next week and the other bit around Christmas - there is still a chance we may pay off all of it in one go next week as I can't be bothered to log in again and go through the hurdles. Thanks

sheramber

UnsureAboutthis said:

Ayr_Rage said:

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

The payments are required as per my previous post. We always paid off the total bill in April. This time we pay it all off in the next week of two inc the additional amount for paying the 23/24 off now, possibly next week and the other bit around Christmas - there is still a chance we may pay off all of it in one go next week as I can't be bothered to log in again and go through the hurdles. Thanks

Putting it in a savings account until needed would give you interest on it.

UnsureAboutthis

sheramber said:

UnsureAboutthis said:

Ayr_Rage said:

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

The payments are required as per my previous post. We always paid off the total bill in April. This time we pay it all off in the next week of two inc the additional amount for paying the 23/24 off now, possibly next week and the other bit around Christmas - there is still a chance we may pay off all of it in one go next week as I can't be bothered to log in again and go through the hurdles. Thanks

Putting it in a savings account until needed would give you interest on it.

Hello.
You are right but I'm pretty lazy like that and worry about forgetting, or having too much on my mind and then getting stressed trying to pay. I've always found paying HMRC online never straightforward. However, this year I have a new phone and now have the bank app.

Call me silly but I like to keep 10-15k in our joint current account. It did not make a lot of difference before interest rate hikes but now, I know its money down the drain

As I type, I've decided to pay within days the 2023/24 amount, then the 2025 amount around Christmas.

Thanks again for your help.