“Nothing to pay” even though there is!

solomon5496

Hi.

My partner and I have been letting a property for about a year. We have the rent paid into a separate account and draw an amount each and leave enough in there for the tax bill,

I recently did my first return for this income. Initially by mistake I clicked the box to recover from my tax code. However I then amended the return to say I would pay the tax bill on January as the money is there to do so.

my tax code was corrected to show I would not be taxed on the rental income (which is all good) but in my self assessment it says “nothing to pay” and I submitted my return 3 months ago. I know I have tax to pay but HMRC is saying I don’t. Do I just let this run until they come after it? I don’t want to receive a penalty nor do I want my tax code to get battered.

has anyone had this same issue?

[Deleted User]

solomon5496 said:

Hi.

My partner and I have been letting a property for about a year. We have the rent paid into a separate account and draw an amount each and leave enough in there for the tax bill,

I recently did my first return for this income. Initially by mistake I clicked the box to recover from my tax code. However I then amended the return to say I would pay the tax bill on January as the money is there to do so.

my tax code was corrected to show I would not be taxed on the rental income (which is all good) but in my self assessment it says “nothing to pay” and I submitted my return 3 months ago. I know I have tax to pay but HMRC is saying I don’t. Do I just let this run until they come after it? I don’t want to receive a penalty nor do I want my tax code to get battered.

has anyone had this same issue?

As it stands there is nothing to pay as it is not due for another six months. Your calculation and your statement of account are two entirely different things.

I would be fairly sure that it will appear in early January. 

Dazed_and_C0nfused

solomon5496 said:

Hi.

My partner and I have been letting a property for about a year. We have the rent paid into a separate account and draw an amount each and leave enough in there for the tax bill,

I recently did my first return for this income. Initially by mistake I clicked the box to recover from my tax code. However I then amended the return to say I would pay the tax bill on January as the money is there to do so.

my tax code was corrected to show I would not be taxed on the rental income (which is all good) but in my self assessment it says “nothing to pay” and I submitted my return 3 months ago. I know I have tax to pay but HMRC is saying I don’t. Do I just let this run until they come after it? I don’t want to receive a penalty nor do I want my tax code to get battered.

has anyone had this same issue?

You seem to have misunderstood a few things.

Firstly your current tax code would not be amended to collect the tax due under Self Assessment for 2023-24.

If that is going to be collected via your tax code then it will be your 2025-26 tax code which includes the amount from Self Assessment.

The change to your current tax code relates to a different question on the tax return about keeping your current tax code as up to date as possible i.e., pay more during the year and have a smaller Self Assessment liability.

That is why your current (2024-25) tax code was changed and amending it back to the previous position is of no relevance whatsoever to the tax due for 2023-24.

What you really need to check is your Self Assessment statement of account and what this show is due in January 2025.

This is likely to be either a Balancing Payment of £X payable on 31 January 2025

Or show that the Balancing Payment has been transferred to be included in your 2025-26 tax code, leaving nothing for you to pay direct to HMRC.

solomon5496

Thanks for the responses.

I sort of understand the last response. It says that it will be collected via my tax code for 25/26 as you said. What I don’t understand is why, when I elected to not have my SA tax recovered via PAYE, it still says that it will be. I want to just pay the tax due at the end of Jan 25 not via PAYE so just want to make sure this is still possible?

solomon5496

Update!

i just went to amend the return again and it now says it will add it to my statement. Hopefully that’s done it and it was just a timing thing.

Dazed_and_C0nfused

solomon5496 said:

Thanks for the responses.

I sort of understand the last response. It says that it will be collected via my tax code for 25/26 as you said. What I don’t understand is why, when I elected to not have my SA tax recovered via PAYE, it still says that it will be. I want to just pay the tax due at the end of Jan 25 not via PAYE so just want to make sure this is still possible?

I think you are still conflating two different things.

There are two questions near the end of your tax return, one is about payment of the tax actually owed, for 2023-24 in this instance.

The second, in this instance, is about keeping your 2024-25 tax code upto date with information from your 2023-24 Self Assessment return.  The theory being that of it includes additional income such as your rental profits, your Self Assessment liability for 2024-25 will be less because you have paid more tax during the year towards your overall liability.

Some people like this, others don't as you are paying tax sooner than you need to and/or it makes your tax code more complicated.

Dazed_and_C0nfused

solomon5496 said:

Update!

i just went to amend the return again and it now says it will add it to my statement. Hopefully that’s done it and it was just a timing thing.

Given it is an amended return I wouldn't be 100% convinced about that.  I would check on a week or so and if it still just shows the Balancing Payment has been transferred to PAYE then you might need to call HMRC to change this.