Self Assessment - payments on account...

mmunro2013

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025 of £710.50

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

Dazed_and_C0nfused

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

Possibly.

Are you looking at your Self Assessment calculation?  

If so payments you have made are not part of that, never have been.

According to your tax calculation what is the total liability for 2023-24 (the bottom line after any tax deducted at source is factored in)?

Did you make a second POA for 2023-24 in July 2024 (for £575.90 or £575.91)?

Nomunnofun1

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

You totally misunderstood the process. 

The calculation is a final reckoning of your bill for 2023/24. Nothing else - like a final invoice. Presumably this is £1421.00?

Now, what have you paid towards this? 

Answer - the two payments on account that you made in January and July 2024. Deduct these from your calculation. You owe £269.20. 

Add this to your first payment on account for 2024/25 and pay the total today!!!

The second payment on account remains payable in July. 

mmunro2013

Dazed_and_C0nfused said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

Possibly.

Are you looking at your Self Assessment calculation?  

If so payments you have made are not part of that, never have been.

According to your tax calculation what is the total liability for 2023-24 (the bottom line after any tax deducted at source is factored in)?

Did you make a second POA for 2023-24 in July 2024 (for £575.90 or £575.91)?

Hi, yes I am looking at my Self Assessment calculation. The line 'Total Income Tax Due' the amount is £1151.80. I didn't make a second POA payment as it didn't say I needed to

Dazed_and_C0nfused

mmunro2013 said:

Dazed_and_C0nfused said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

Possibly.

Are you looking at your Self Assessment calculation?  

If so payments you have made are not part of that, never have been.

According to your tax calculation what is the total liability for 2023-24 (the bottom line after any tax deducted at source is factored in)?

Did you make a second POA for 2023-24 in July 2024 (for £575.90 or £575.91)?

Hi, yes I am looking at my Self Assessment calculation. The line 'Total Income Tax Due' the amount is £1151.80. I didn't make a second POA payment as it didn't say I needed to

You are getting very confused somewhere.

You cannot have a first POA of £710.50 for 2024-25 if your total Self Assessment liability for 2023-24 is only £1151.80.

Instead of feeding us information in dribs and deans why don't you just provide the full details from your calculation and associated explanation.

To be honest HMRC make this crystal clear, most people just seem to try and overcomplicate things and don't take in what is being explained in pretty clear terms!

Nomunnofun1

Dazed_and_C0nfused said:

mmunro2013 said:

Dazed_and_C0nfused said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January of 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

Possibly.

Are you looking at your Self Assessment calculation?  

If so payments you have made are not part of that, never have been.

According to your tax calculation what is the total liability for 2023-24 (the bottom line after any tax deducted at source is factored in)?

Did you make a second POA for 2023-24 in July 2024 (for £575.90 or £575.91)?

Hi, yes I am looking at my Self Assessment calculation. The line 'Total Income Tax Due' the amount is £1151.80. I didn't make a second POA payment as it didn't say I needed to

You are getting very confused somewhere.

You cannot have a first POA of £710.50 for 2024-25 if your total Self Assessment liability for 2023-24 is only £1151.80.

Instead of feeding us information in dribs and deans why don't you just provide the full details from your calculation and associated explanation.

To be honest HMRC make this crystal clear, most people just seem to try and overcomplicate things and don't take in what is being explained in pretty clear terms!

There’s something wrong here - misinformation! It can’t be a coincidence that £269.20 plus £1151.80 is exactly £1421 which would make the POAs £710.50. 

Could it be that the POAs 2023/24 were each £710.50, a final liability of £1151.80 meaning £269.20 overpaid with each POA for 2024/25 being  
£575.90?

mmunro2013

Nomunnofun1 said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

You totally misunderstood the process. 

The calculation is a final reckoning of your bill for 2023/24. Nothing else - like a final invoice. Presumably this is £1421.00?

Now, what have you paid towards this? 

Answer - the two payments on account that you made in January and July 2024. Deduct these from your calculation. You owe £269.20. 

Add this to your first payment on account for 2024/25 and pay the total today!!!

The second payment on account remains payable in July. 

Wow! I am confused. I paid the £575.90 back in January 2024. 2023-4 tax return and payments complete. Now, tax return 2024-25 (which I submitted yesterday), The last page of my calculation looks something like this:

...'Total Income Tax due £1,421.00

Estimated payment due by 31 January 2025

You must pay the total of any tax and class 4 NIC due for 2023-24 plus first payment on account due for 2024-25 by 31 January 2025

This amount does not take into account any 2023-24 payments on account you may have already made
2023-24 balancing payment £1,421.00

1st payment on account for 2024-25 due 31 January 2025 £710.50

Total due by 31 January 2025 £2,131.50

2nd payment on account for 2024-25 due 31 July 2025 £710.50'...

Nomunnofun1

mmunro2013 said:

Nomunnofun1 said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

You totally misunderstood the process. 

The calculation is a final reckoning of your bill for 2023/24. Nothing else - like a final invoice. Presumably this is £1421.00?

Now, what have you paid towards this? 

Answer - the two payments on account that you made in January and July 2024. Deduct these from your calculation. You owe £269.20. 

Add this to your first payment on account for 2024/25 and pay the total today!!!

The second payment on account remains payable in July. 

Wow! I am confused. I paid the £575.90 back in January 2024. 2023-4 tax return and payments complete. Now, tax return 2024-25 (which I submitted yesterday), The last page of my calculation looks something like this:

...'Total Income Tax due £1,421.00

Estimated payment due by 31 January 2025

You must pay the total of any tax and class 4 NIC due for 2023-24 plus first payment on account due for 2024-25 by 31 January 2025

This amount does not take into account any 2023-24 payments on account you may have already made
2023-24 balancing payment £1,421.00

1st payment on account for 2024-25 due 31 January 2025 £710.50

Total due by 31 January 2025 £2,131.50

2nd payment on account for 2024-25 due 31 July 2025 £710.50'...

So - as before. You pay today £1421.00 less the total of what should have been two payments on account payable in January and July 2024. Check your bank statements. That’s 2023/24 taken care of. 

You also pay today your first payment on account for 2024/25 of £710.50. 

The 2nd payment on account is due in July. 

Dazed_and_C0nfused

mmunro2013 said:

Nomunnofun1 said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

You totally misunderstood the process. 

The calculation is a final reckoning of your bill for 2023/24. Nothing else - like a final invoice. Presumably this is £1421.00?

Now, what have you paid towards this? 

Answer - the two payments on account that you made in January and July 2024. Deduct these from your calculation. You owe £269.20. 

Add this to your first payment on account for 2024/25 and pay the total today!!!

The second payment on account remains payable in July. 

Wow! I am confused. I paid the £575.90 back in January 2024. 2023-4 tax return and payments complete. Now, tax return 2024-25 (which I submitted yesterday), The last page of my calculation looks something like this:

...'Total Income Tax due £1,421.00

Estimated payment due by 31 January 2025

You must pay the total of any tax and class 4 NIC due for 2023-24 plus first payment on account due for 2024-25 by 31 January 2025

This amount does not take into account any 2023-24 payments on account you may have already made
2023-24 balancing payment £1,421.00

1st payment on account for 2024-25 due 31 January 2025 £710.50

Total due by 31 January 2025 £2,131.50

2nd payment on account for 2024-25 due 31 July 2025 £710.50'...

I don't know how you have suddenly changed your liability from £1151.80 to £1421.00 but this higher figure makes far more sense.

If you have only made a single POA of £575.90 towards 2023-24 then you have £845.10 left to pay for 2023-24.

Plus £710.50 as your first POA for 2024-25.

So £1,555.60 in total to be paid today.  You will be charged late payment interest on the £575.90 you should have paid in July 2024 so you might want add a bit extra towards this.

To be clear the £575.90 you owe from July 2024 is a part of the £1,555.60, not in addition to that.

What isn't clear is why you haven't had a debt collector knocking on your door!

Nomunnofun1

Dazed_and_C0nfused said:

mmunro2013 said:

Nomunnofun1 said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

You totally misunderstood the process. 

The calculation is a final reckoning of your bill for 2023/24. Nothing else - like a final invoice. Presumably this is £1421.00?

Now, what have you paid towards this? 

Answer - the two payments on account that you made in January and July 2024. Deduct these from your calculation. You owe £269.20. 

Add this to your first payment on account for 2024/25 and pay the total today!!!

The second payment on account remains payable in July. 

Wow! I am confused. I paid the £575.90 back in January 2024. 2023-4 tax return and payments complete. Now, tax return 2024-25 (which I submitted yesterday), The last page of my calculation looks something like this:

...'Total Income Tax due £1,421.00

Estimated payment due by 31 January 2025

You must pay the total of any tax and class 4 NIC due for 2023-24 plus first payment on account due for 2024-25 by 31 January 2025

This amount does not take into account any 2023-24 payments on account you may have already made
2023-24 balancing payment £1,421.00

1st payment on account for 2024-25 due 31 January 2025 £710.50

Total due by 31 January 2025 £2,131.50

2nd payment on account for 2024-25 due 31 July 2025 £710.50'...

I don't know how you have suddenly changed your liability from £1151.80 to £1421.00 but this higher figure makes far more sense.

If you have only made a single POA of £575.90 towards 2023-24 then you have £845.10 left to pay for 2023-24.

Plus £710.50 as your first POA for 2024-25.

So £1,555.60 in total to be paid today.  You will be charged late payment interest on the £575.90 you should have paid in July 2024 so you might want add a bit extra towards this.

To be clear the £575.90 you owe from July 2024 is a part of the £1,555.60, not in addition to that.

What isn't clear is why you haven't had a debt collector knocking on your door!

Yes - £1151.80 is clearly 2022/23 liability. Very confusing and, like you, not convinced July POA remains unpaid. 

Dazed_and_C0nfused

Nomunnofun1 said:

Dazed_and_C0nfused said:

mmunro2013 said:

Nomunnofun1 said:

mmunro2013 said:

Last year after completing and submitting my tax return on-line I was instructed (by my 'tax calculation') to pay monies into my account:
1st payment on account for 2023-24 due 31 January 2024 of £575.90

This year I had similar, however different amounts:
1st payment on account for 2024-25 due 31 January 2025 of £710.50
2nd payment on account for 2024-25 due 31 July 2025

My question is: what happens to these monies 'on account'? I don't seem to see them credited to my account anywhere? Am I misunderstanding this process?

You totally misunderstood the process. 

The calculation is a final reckoning of your bill for 2023/24. Nothing else - like a final invoice. Presumably this is £1421.00?

Now, what have you paid towards this? 

Answer - the two payments on account that you made in January and July 2024. Deduct these from your calculation. You owe £269.20. 

Add this to your first payment on account for 2024/25 and pay the total today!!!

The second payment on account remains payable in July. 

Wow! I am confused. I paid the £575.90 back in January 2024. 2023-4 tax return and payments complete. Now, tax return 2024-25 (which I submitted yesterday), The last page of my calculation looks something like this:

...'Total Income Tax due £1,421.00

Estimated payment due by 31 January 2025

You must pay the total of any tax and class 4 NIC due for 2023-24 plus first payment on account due for 2024-25 by 31 January 2025

This amount does not take into account any 2023-24 payments on account you may have already made
2023-24 balancing payment £1,421.00

1st payment on account for 2024-25 due 31 January 2025 £710.50

Total due by 31 January 2025 £2,131.50

2nd payment on account for 2024-25 due 31 July 2025 £710.50'...

I don't know how you have suddenly changed your liability from £1151.80 to £1421.00 but this higher figure makes far more sense.

If you have only made a single POA of £575.90 towards 2023-24 then you have £845.10 left to pay for 2023-24.

Plus £710.50 as your first POA for 2024-25.

So £1,555.60 in total to be paid today.  You will be charged late payment interest on the £575.90 you should have paid in July 2024 so you might want add a bit extra towards this.

To be clear the £575.90 you owe from July 2024 is a part of the £1,555.60, not in addition to that.

What isn't clear is why you haven't had a debt collector knocking on your door!

Yes - £1151.80 is clearly 2022/23 liability. Very confusing and, like you, not convinced July POA remains unpaid. 

Typical 31 January panic I suspect 😂