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SA Return - Payments in advance
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mlz1413 said:The payment on account/ payment in advance is actually 'in Advance' as it is for next year.
I have to pay this too and it was a surprise the first time.
So when a tax bill is over an amount, say £2000, then an extra 50% is added for payment on 31st Jan and 31st July towards the following year.
So an expected tax bill of £2000 on 31/1/25 becomes £3000.
Then an extra £1000 is due by 31/7/25.
When the 25/26 return is submitted the £2000 paid on account can be used against that money due.
So it really is In Advance, even compared to PAYE which tax what you earn as you receive it.
Plus your tax code gets reduces at the same time, so you get less of any monthly payments.
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mlz1413 said:The payment on account/ payment in advance is actually 'in Advance' as it is for next year.
I have to pay this too and it was a surprise the first time.
So when a tax bill is over an amount, say £2000, then an extra 50% is added for payment on 31st Jan and 31st July towards the following year.
So an expected tax bill of £2000 on 31/1/25 becomes £3000.
Then an extra £1000 is due by 31/7/25.
When the 25/26 return is submitted the £2000 paid on account can be used against that money due.
So it really is In Advance, even compared to PAYE which tax what you earn as you receive it.
Plus your tax code gets reduces at the same time, so you get less of any monthly payments.
I'm going to check with HMRC if I can start paying my PAYE tax 10 months into the tax year. I suspect the answer will be no.1 -
Isthisforreal99 said:mlz1413 said:The payment on account/ payment in advance is actually 'in Advance' as it is for next year.
I have to pay this too and it was a surprise the first time.
So when a tax bill is over an amount, say £2000, then an extra 50% is added for payment on 31st Jan and 31st July towards the following year.
So an expected tax bill of £2000 on 31/1/25 becomes £3000.
Then an extra £1000 is due by 31/7/25.
When the 25/26 return is submitted the £2000 paid on account can be used against that money due.
So it really is In Advance, even compared to PAYE which tax what you earn as you receive it.
Plus your tax code gets reduces at the same time, so you get less of any monthly payments.0 -
Nomunnofun1 said:Isthisforreal99 said:mlz1413 said:The payment on account/ payment in advance is actually 'in Advance' as it is for next year.
I have to pay this too and it was a surprise the first time.
So when a tax bill is over an amount, say £2000, then an extra 50% is added for payment on 31st Jan and 31st July towards the following year.
So an expected tax bill of £2000 on 31/1/25 becomes £3000.
Then an extra £1000 is due by 31/7/25.
When the 25/26 return is submitted the £2000 paid on account can be used against that money due.
So it really is In Advance, even compared to PAYE which tax what you earn as you receive it.
Plus your tax code gets reduces at the same time, so you get less of any monthly payments.0
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