Huge self assessment calculation on buy-to-let property

scrub

I have one buy-to-let property which I rent out to a charity who cover most of the costs. Therefore, my self assessment is very straightforward as there are only a few figures.

Total rent is £14,400
Costs approx £2.5k
Therefore, profit approx £11,800

With the payment on accounts for last year (Jan and Jul) approx £5,700 and the final calculation due end of Jan coming to approx £5,100, it means I'll pay approx total £10,800 on a profit of £11,800! And they're asking again for the same payments on account for next year.

This can't be correct? 

My job is PAYE so that shouldn't affect anything. 

Dazed_and_C0nfused

scrub said:

I have one buy-to-let property which I rent out to a charity who cover most of the costs. Therefore, my self assessment is very straightforward as there are only a few figures.

Total rent is £14,400
Costs approx £2.5k
Therefore, profit approx £11,800

With the payment on accounts for last year (Jan and Jul) approx £5,700 and the final calculation due end of Jan coming to approx £5,100, it means I'll pay approx total £10,800 on a profit of £11,800! And they're asking again for the same payments on account for next year.

This can't be correct? 

My job is PAYE so that shouldn't affect anything. 

I don't know if that is a serious question but in the unlikely event it is then have you not considered the fact that the £5,100 due for 2023-24 is £600 less than the £5,700 you have already paid.

So if your first POA for the current tax year (2024-25) is say £2,550 then you will actually need to pay a bit less* than £1,950 at the end of this month.
*a bit less as you will probably receive some interest from HMRC for having paid more than what was ultimately due

Have you bothered to read the full explanation at the end of the Self Assessment 🤔

[Deleted User]

scrub said:

I have one buy-to-let property which I rent out to a charity who cover most of the costs. Therefore, my self assessment is very straightforward as there are only a few figures.

Total rent is £14,400
Costs approx £2.5k
Therefore, profit approx £11,800

With the payment on accounts for last year (Jan and Jul) approx £5,700 and the final calculation due end of Jan coming to approx £5,100, it means I'll pay approx total £10,800 on a profit of £11,800! And they're asking again for the same payments on account for next year.

This can't be correct? 

My job is PAYE so that shouldn't affect anything. 

The amount due by 31st January IS £5100. That is the FINAL BILL!!

 The fact remains that you appear to have made two payments on account totalling £5700 towards that bill. You are owed £600 which can be set against the payment on account due of £2550 (?) leaving £1950 payable on 31st January, £2550 on 31st July. 

By 31st July you will have made payments of £5100 towards the FINAL BiLL for 2024/25.