Payments on account not deducted from Tax Return

DRS1

ApolloHubble said:

Ayr_Rage said:

ApolloHubble said:

Ayr_Rage said:

Do the payments you have already paid appear in your online account (payments/credits received) ?

Yes they do

In that case, once you have filed your return for 24/25 whatever the calculation shows as payable will be correct and if that includes further Payments on Account you'll need to pay them.

The amount it states I owe shows no consideration of credit that I paid POA.

I think it depends where you are looking.  The calculation in the online tax return doesn't include any reference to POAs.  But there is another page in the self assessment part of your Tax Account which will show how they have arrived at the Balancing Payment due on 31 January (which is the tax calculated in your tax return minus the POAs you have paid for the tax year) 

DRS1

The page you should look for is this one.  I have edited out the bit showing the calculation but you can see bits in bold showing where to look.

ApolloHubble

DRS1 said:

The page you should look for is this one.  I have edited out the bit showing the calculation but you can see bits in bold showing where to look.

Ah yes I found this page and it shows the two payments I have made On Account. So are you saying that whilst this POA is not going to show in my Tax Return submission calculation, when I actually Submit my calculation, HMRC will then deduct what I have already paid On Account? For example, let's say my calculation shows I am due to pay £10,000 tax for 24/25, I have already paid two lots of £2000 (Jan 31st and July 31st 2025) so they will then come back to me and say I owe £6000? 

ApolloHubble

DRS1 said:

ApolloHubble said:

Ayr_Rage said:

ApolloHubble said:

Ayr_Rage said:

Do the payments you have already paid appear in your online account (payments/credits received) ?

Yes they do

In that case, once you have filed your return for 24/25 whatever the calculation shows as payable will be correct and if that includes further Payments on Account you'll need to pay them.

The amount it states I owe shows no consideration of credit that I paid POA.

I think it depends where you are looking.  The calculation in the online tax return doesn't include any reference to POAs.  But there is another page in the self assessment part of your Tax Account which will show how they have arrived at the Balancing Payment due on 31 January (which is the tax calculated in your tax return minus the POAs you have paid for the tax year) 

On my View My Calculation PDF, the only deductions under the Minus subheading is my yearly Tax allowance. No reference to the two payments on account. It shows as follows:

PROFIT FROM SELF-EMPLOYMENT(what I have earned the year 24/25)
Minus Personal Allowance 
TOTAL INCOME ON WHICH TAX IS DUE

Basic Rate 
Income Tax Due
PLUS National Insurance contributions band 4

The actual amount does seem to  work out about right, but the POA has not been credited. 

Dazed_and_C0nfused

ApolloHubble said:

DRS1 said:

ApolloHubble said:

Ayr_Rage said:

ApolloHubble said:

Ayr_Rage said:

Do the payments you have already paid appear in your online account (payments/credits received) ?

Yes they do

In that case, once you have filed your return for 24/25 whatever the calculation shows as payable will be correct and if that includes further Payments on Account you'll need to pay them.

The amount it states I owe shows no consideration of credit that I paid POA.

I think it depends where you are looking.  The calculation in the online tax return doesn't include any reference to POAs.  But there is another page in the self assessment part of your Tax Account which will show how they have arrived at the Balancing Payment due on 31 January (which is the tax calculated in your tax return minus the POAs you have paid for the tax year) 

On my View My Calculation PDF, the only deductions under the Minus subheading is my yearly Tax allowance. No reference to the two payments on account. It shows as follows:

PROFIT FROM SELF-EMPLOYMENT(what I have earned the year 24/25)
Minus Personal Allowance 
TOTAL INCOME ON WHICH TAX IS DUE

Basic Rate 
Income Tax Due
PLUS National Insurance contributions band 4

The actual amount does seem to  work out about right, but the POA has not been credited. 

As has already been explained POA that you make are never part of your Self Assessment tax calculation.  They weren't included in 1096/97 when Self Assessment started and never have been since then.

Two or three days after you submit your tax return your Self Assessment account will be updated to factor in the liability arising from your 2024/25 tax return.  

If the liability relevant for POA purposes is more than the previous year then the existing POA for 2024/25 will be unchanged and the additional liability will be added as a Balancing Payment, payable on 31 January 2026

POA for 2025/26 will also be added, payable on 31 January 2026 and 31 July 2026.

There is absolutely no point hoping POA are ever going to appear anywhere in your tax calculation.

ApolloHubble

Dazed_and_C0nfused said:

ApolloHubble said:

DRS1 said:

ApolloHubble said:

Ayr_Rage said:

ApolloHubble said:

Ayr_Rage said:

Do the payments you have already paid appear in your online account (payments/credits received) ?

Yes they do

In that case, once you have filed your return for 24/25 whatever the calculation shows as payable will be correct and if that includes further Payments on Account you'll need to pay them.

The amount it states I owe shows no consideration of credit that I paid POA.

I think it depends where you are looking.  The calculation in the online tax return doesn't include any reference to POAs.  But there is another page in the self assessment part of your Tax Account which will show how they have arrived at the Balancing Payment due on 31 January (which is the tax calculated in your tax return minus the POAs you have paid for the tax year) 

On my View My Calculation PDF, the only deductions under the Minus subheading is my yearly Tax allowance. No reference to the two payments on account. It shows as follows:

PROFIT FROM SELF-EMPLOYMENT(what I have earned the year 24/25)
Minus Personal Allowance 
TOTAL INCOME ON WHICH TAX IS DUE

Basic Rate 
Income Tax Due
PLUS National Insurance contributions band 4

The actual amount does seem to  work out about right, but the POA has not been credited. 

As has already been explained POA that you make are never part of your Self Assessment tax calculation.  They weren't included in 1096/97 when Self Assessment started and never have been since then.

Two or three days after you submit your tax return your Self Assessment account will be updated to factor in the liability arising from your 2024/25 tax return.  

If the liability relevant for POA purposes is more than the previous year then the existing POA for 2024/25 will be unchanged and the additional liability will be added as a Balancing Payment, payable on 31 January 2026

POA for 2025/26 will also be added, payable on 31 January 2026 and 31 July 2026.

There is absolutely no point hoping POA are ever going to appear anywhere in your tax calculation.

Thank you. You have explained this very clearly so it makes sense. This is the first time I have had to pay POA so that is why I did not know that it was not going to appear on my tax calculation. As I have earned more in 25/26 than I did in 24/25, the POA I have paid for 24/25 will go towards my balancing payment. Ok

Dazed_and_C0nfused

ApolloHubble said:

Dazed_and_C0nfused said:

ApolloHubble said:

DRS1 said:

ApolloHubble said:

Ayr_Rage said:

ApolloHubble said:

Ayr_Rage said:

Do the payments you have already paid appear in your online account (payments/credits received) ?

Yes they do

In that case, once you have filed your return for 24/25 whatever the calculation shows as payable will be correct and if that includes further Payments on Account you'll need to pay them.

The amount it states I owe shows no consideration of credit that I paid POA.

I think it depends where you are looking.  The calculation in the online tax return doesn't include any reference to POAs.  But there is another page in the self assessment part of your Tax Account which will show how they have arrived at the Balancing Payment due on 31 January (which is the tax calculated in your tax return minus the POAs you have paid for the tax year) 

On my View My Calculation PDF, the only deductions under the Minus subheading is my yearly Tax allowance. No reference to the two payments on account. It shows as follows:

PROFIT FROM SELF-EMPLOYMENT(what I have earned the year 24/25)
Minus Personal Allowance 
TOTAL INCOME ON WHICH TAX IS DUE

Basic Rate 
Income Tax Due
PLUS National Insurance contributions band 4

The actual amount does seem to  work out about right, but the POA has not been credited. 

As has already been explained POA that you make are never part of your Self Assessment tax calculation.  They weren't included in 1096/97 when Self Assessment started and never have been since then.

Two or three days after you submit your tax return your Self Assessment account will be updated to factor in the liability arising from your 2024/25 tax return.  

If the liability relevant for POA purposes is more than the previous year then the existing POA for 2024/25 will be unchanged and the additional liability will be added as a Balancing Payment, payable on 31 January 2026

POA for 2025/26 will also be added, payable on 31 January 2026 and 31 July 2026.

There is absolutely no point hoping POA are ever going to appear anywhere in your tax calculation.

Thank you. You have explained this very clearly so it makes sense. This is the first time I have had to pay POA so that is why I did not know that it was not going to appear on my tax calculation. As I have earned more in 25/26 than I did in 24/25, the POA I have paid for 24/25 will go towards my balancing payment. Ok

No they won't.  The Balancing Payment will be payable in full, POA will not go towards it.

Say your 2024/25 liability is £4,000 and each of the existing POA for 2024/25 are £1,100.

Your Balancing Payment for 2024/25 would be £1,800, the POA totalling £2,200 do not change that.

DRS1

ApolloHubble said:

DRS1 said:

The page you should look for is this one.  I have edited out the bit showing the calculation but you can see bits in bold showing where to look.

Ah yes I found this page and it shows the two payments I have made On Account. So are you saying that whilst this POA is not going to show in my Tax Return submission calculation, when I actually Submit my calculation, HMRC will then deduct what I have already paid On Account? For example, let's say my calculation shows I am due to pay £10,000 tax for 24/25, I have already paid two lots of £2000 (Jan 31st and July 31st 2025) so they will then come back to me and say I owe £6000? 

Yes.  The £6000 will be the balancing payment due on 31 January 2026.  As @Dazed_and_C0nfused has said you will also have to pay two POAs £5000 by 31 January 2026 and £5000 by 31 July 2026.