Self Assessment - payments on account...

[Deleted User]

Dazed_and_C0nfused said:

[Deleted User] said:

Dazed_and_C0nfused said:

mmunro2013 said:

[Deleted User] 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 😂

Still two hours left - plenty of time!  Over 3 million outstanding at 8am this morning!

Tomorrow it will be - my payments won’t clear my bank until Monday. Will I get a fine/penalty/bailiffs calling, 1000 lashes?

poppystar

You might also want to redact your name and UTR from your posts

Dazed_and_C0nfused

mmunro2013 said:

mmunro2013 said:

Sorry for all the confusion... I attach here snapshots of my 2023-24 final tax calculation... not sure if this helps?

JFYI I paid £2131.50 yesterday...

Sensible for have paid something, far better than prevaricating.

But given what is in the screenshot above I have no idea how you decided that was what you should have paid 😭

[Deleted User]

OP - you have now paid £575.90 too much! See Dazed post at 9.35. 

Personally, I would leave it sitting and deduct that from the second payment on account due in July, given your confusion now!

Are you absolutely certain you made no payment in July 2024?

Wait a few days and check your STATEMENT to see where you are. 

Caz3121

mmunro2013 said:

JFYI I paid £2131.50 yesterday...

So you paid the £1,421 + the 1st payment on account
As it says the £1,421 does not take into account the payments on account you made 
You have now overpaid by whatever payments on account you made (January 2024 ...£575.90?)

[Deleted User]

Caz3121 said:

mmunro2013 said:

JFYI I paid £2131.50 yesterday...

So you paid the £1,421 + the 1st payment on account
As it says the £1,421 does not take into account the payments on account you made 
You have now overpaid by whatever payments on account you made (January 2024 ...£575.90?)

Exactly this!

[Deleted User]

Dazed_and_C0nfused said:

mmunro2013 said:

mmunro2013 said:

Sorry for all the confusion... I attach here snapshots of my 2023-24 final tax calculation... not sure if this helps?

JFYI I paid £2131.50 yesterday...

Sensible for have paid something, far better than prevaricating.

But given what is in the screenshot above I have no idea how you decided that was what you should have paid 😭

He paid the total liability for 2023/24 plus the POA for 2024/25, ignoring any POA made for 2023/24. 

OP - delete your two posts with the screenshot - your name is included.

Dazed_and_C0nfused

[Deleted User] said:

Dazed_and_C0nfused said:

mmunro2013 said:

mmunro2013 said:

Sorry for all the confusion... I attach here snapshots of my 2023-24 final tax calculation... not sure if this helps?

JFYI I paid £2131.50 yesterday...

Sensible for have paid something, far better than prevaricating.

But given what is in the screenshot above I have no idea how you decided that was what you should have paid 😭

He paid the total liability for 2023/24 plus the POA for 2024/25, ignoring any POA made for 2023/24. 

I do understand that.  I just don't understand how the op can possibly have though that was the correct thing to pay given he has made a point of telling us he had paid the first POA for 2023-24.

You have to sympathise with HMRC sometimes, they have a good explanation for this and still people just don't get it!

Dazed_and_C0nfused

[Deleted User] said:

Dazed_and_C0nfused said:

mmunro2013 said:

mmunro2013 said:

Sorry for all the confusion... I attach here snapshots of my 2023-24 final tax calculation... not sure if this helps?

JFYI I paid £2131.50 yesterday...

Sensible for have paid something, far better than prevaricating.

But given what is in the screenshot above I have no idea how you decided that was what you should have paid 😭

He paid the total liability for 2023/24 plus the POA for 2024/25, ignoring any POA made for 2023/24. 

OP - delete your two posts with the screenshot - your name is included.

And the UTR 😳

[Deleted User]

Dazed_and_C0nfused said:

[Deleted User] said:

Dazed_and_C0nfused said:

mmunro2013 said:

mmunro2013 said:

Sorry for all the confusion... I attach here snapshots of my 2023-24 final tax calculation... not sure if this helps?

JFYI I paid £2131.50 yesterday...

Sensible for have paid something, far better than prevaricating.

But given what is in the screenshot above I have no idea how you decided that was what you should have paid 😭

He paid the total liability for 2023/24 plus the POA for 2024/25, ignoring any POA made for 2023/24. 

I do understand that.  I just don't understand how the op can possibly have though that was the correct thing to pay given he has made a point of telling us he had paid the first POA for 2023-24.

You have to sympathise with HMRC sometimes, they have a good explanation for this and still people just don't get it!

Yes - understood!