Where do previous payments on account appear on current year tax return?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81954191#Comment_81954191

I would imagine the interest will appear once the credit balance is used.

For example (using totally made up figures) if you asked for a refund now you might get say 50p added to the refund.

But if you left the credit on your account and it was allocated to a liability due on 31 July you might get say £1.25

intalex

Understood, so if the interest comes through after the due date of 31 July (when 2nd POA is paid via DD) then it will remain as a credit and probably be allocated to next year's 1st POA…

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81954276#Comment_81954276

I suspect it will actually be part of your DD that will be the credit balance. Not that it matters really.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81954191#Comment_81954191

Direct Debits cannot be amended by yourself. Are you meaning some other form of payment like a Standing Order?

intalex

The NDDS option requires allows setting up a DD payment and specifying the amount and date for the DD collection, I find it safer than remembering to pay on or near to the date. This morning I amended the amount of a previously setup DD, and if interest shows up before say 24 July then I'll amend the amount again, otherwise I'll be in credit by the small interest amount which I'll use towards next year's first POA.

intalex

A related question, if the actuals submitted promptly (via SA, say on 6 April) come out higher than the POAs (1st already paid by 31 January, 2nd due by 31 July), which of these happens:

(i) the 1st POA is retrospectively increased to half the actuals leading to a debit balance with interest charged

(ii) they stick to the original (lower) 1st POA and increase the 2nd POA by the full difference

(iii) they stick to the original (lower) 1st and 2nd POAs and the difference becomes the tax liability due by the self-assessment deadline (31 January)?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81974116#Comment_81974116

3.

POA are never more than the amount determined by the return of the previous tax year. And they can only ever be a maximum of 1 pence different to each other.

They can be reduced, if the actual liability is less, but cannot be increased unless the return for the previous year is amended for some reason.

intalex

https://forums.moneysavingexpert.com/discussion/comment/81954218#Comment_81954218

The interest (dated 31 July) did show up and close to your estimate, so I've re-amended (reduced) the DD to factor in this interest… hopefully it'll all be automatically allocated correctly on 31 July and lead to a £0.00 balance which is my preference…