We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Income Tax Payment on Account
Comments
-
Your mother received her pension for 24 - 25 free of tax and paid the tax due by 31 January 26.
She has received pension payments from April 25 to now free of tax.
Anybody under PAYE would have been paying that tax each month.
Payment on a count on 31 January is not paying in advance. It is paying months late on taxable income already received.She will have another payment to make by 31 July 26.
If her return is submitted asap after 6April and before 31 July then the correct amount of tax due will be calculated. If the bill is less than the payments on account together an adjustment will be made .
If it more than she has paid / will pay on the payments on account then the balance will be payable by 31 January 27, along with any payments on account due for 26/27.self assessment has worked this way since it started in 1996/97.
3 -
If what you have described is the full story then there is absolutely no reason for her to file a Self Assessment tax return anymore.
HMRC deal with this by issuing a Simple Assessment calculation, usually in the summer after the end of the tax year, and the tax is payable on 31 January after the end of the tax year in question (or a bit later if there is a delay in issuing the Simple Assessment calculation).
One thing you will find preferable about Simple Assessment is that there are never any payments on account and, at the moment it seems no late payment interest is charged.
LITRG guidance seems to suggest interest can be charged but I don't think anyone has ever posted about that happening so far.
1 -
Many thanks for this information. My Mum has had to complete Self Assessment for at least the last 10 years - HMRC wrote to her and told her she had to.
Her income is indeed very simple and she only gets state pension. I will call HMRC on Monday to see if she can move to Simple Assessment. I have just done some internet search and found the following: -
It is not possible for an individual to choose to register for simple assessment. HMRC decide when to issue a simple assessment.
However, I will still try. Thanks again.
0 -
You should pose the question differently and be asking that she should no longer be required to self assess as her tax affairs are simple rather than requesting to be moved to simple assessment, if she is no longer required to do the former the latter will naturally follow..
Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
1 -
That is true about registering and HMRC issuing the Simple Assessment.
But from what you have posted she doesn't meet the criteria to have to file a Self Assessment return.
If HMRC agree returns are no longer needed then that doesn't stop the tax being due but the mechanism is for that is HMRC issuing a Simple Assessment calculation instead of a notice to file a return.
And if they agree that a return is no longer required and the final one needed was the 2024/25 return then the POA for 2025/26 will automatically get cancelled.
I know you have clearly stated that State Pension is her only (taxable) income but are quite sure about that? Getting some (taxable) interest would be quite normal for most people.
0 -
Hi - I do the Self Assessment for her and yes it is the only income. When I completed self assessment three weeks ago HMRC had filled in every box already. She has no savings interest or other income.
0 -
Thanks everyone - I will call HMRC on Monday. Realise that there will still be tax to pay with simple assessment, but it will remove me having to do the self assessment every year and pay the tax. I have already paid £1200 and am about to pay another £600.
0 -
I thought HMRC wrote to people when no longer needed to do self assessment - thats what they did to me in past ?
0 -
Monday is one of the worst days to call without being kept on hold for ages. I would either phone them at bang on 8 o'clock, or leave it till another day.
0 -
They can do. But for some reason that hasn't with the op's mum and from what the op has said there is no reason for a tax return.
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards