Is "Payment on account" for self assessment deducted from the next calculation?

Bookworm225

MarlowMallard said:

Similar happened to me a few years back... if your balancing payment in Jan is less than either £1k or 20% of the total tax for the year, you don't have to make payments on account, and just pay the balance (tax owed minus PAYE) in Jan. 
When you go over that threshold, you have to pay 1.5 times the balance in Jan, i.e. 1x for the previous tax year and 0.5 for the ongoing tax year, and another 0.5x in July. The next Jan there is just a small adjustment to the previous tax year, plus half the payment on account for next year. 

yep all as explained in the link previously given 

[Deleted User]

MarlowMallard said:

Similar happened to me a few years back... if your balancing payment in Jan is less than either £1k or 20% of the total tax for the year, you don't have to make payments on account, and just pay the balance (tax owed minus PAYE) in Jan. 
When you go over that threshold, you have to pay 1.5 times the balance in Jan, i.e. 1x for the previous tax year and 0.5 for the ongoing tax year, and another 0.5x in July. The next Jan there is just a small adjustment to the previous tax year, plus half the payment on account for next year. 

The ‘small’ adjustment would be entirely dependent on how much the final liability for that previous tax year exceeded (or was less than) the total of the payments on account. 

The balancing payment could be very large!