Self Assessment payment and PAYE

qsk

For the first time, I was asked to do a self assessment for year 2024/2025 because my BBSI went over 10000. After submitting the form, I was asked to pay around £3000.

My problem is that I am on PAYE and my tax code has been adjusted last/this year a few time because of the BBCI (my tax code is K) now. If I pay this £3000, will that be taken into account for my next tax code? That is, am I paying the tax twice?

Thanks.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6665529/self-assessment-payment-and-paye

Nope, the two things are for different tax years.

Or do you mean you think some tax owed for 2024/25 was included in your 2025/26 tax code (unusual but not impossible).

The more likely thing to have happened is HMRC were collecting extra tax for 2025/26 during 2025/26, which may well mean you have a smaller Self Assessment liability for 2025/26 when you file the return for that tax year.

qsk

https://forums.moneysavingexpert.com/discussion/comment/81975610#Comment_81975610

I don't know how HMRC works and whether the 24/25 owed payment (based on their estimate) was taking into account into 25/26 tax code.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81975707#Comment_81975707

Do you have the breakdown of your final tax code for 2025/26?

qsk

https://forums.moneysavingexpert.com/discussion/comment/81975708#Comment_81975708

I have one from Nov 2025. It says I owe 1065 from earlier year.

DRS1

It seems like you have your own deadline for doing the 24/5 tax return (for most it was due by the end of January 26). That deadline presumably also applies to paying the tax due so do make sure you pay whatever is due within the deadline. If not you will probably be charged interest.

If you go onto your personal tax account and look in the self assessment section that should have a bit showing how much tax you owe and by when. Sometimes that is not the same figure as is shown on your tax calculation in the self assessment return. It is worth checking that page.

qsk

https://forums.moneysavingexpert.com/discussion/comment/81975839#Comment_81975839

I need to pay 1st payment by beginning of July and 2nd payment by end of July. There is no problem with payments - I just don't want to pay twice, one through Self Assessment and one through PAYE. Should I trust HMRC that would never happen?

IOWJJBTM2025

I think that because your tax is now over £1000 you have been moved onto 'Payments On account' If you search Payments on account on you tube there is an amount of videos explaining. The first year that you move to 'Payments on Account" is a bit of a shock but moving forwards it gets easier.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81975899#Comment_81975899

Personally I don't think self assessment and PAYE are that joined up. So I wouldn't rule out paying twice.

But you have done a tax return for 24/5 and presumably included in that all the tax that had been deducted for 24/5. The tax shown as owing for that year as a result will be a more accurate figure than whatever is in your tax code (even assuming the year they are collecting for via the tax code is 24/5 and not some other year).

When you do the tax return for 25/6 the tax deducted in that year will again be set against the tax due for that year and so you may find you owe less than otherwise (or may even be due a refund) for 25/6. So you could just pay up in July and let it work its way through the system.

If you phone HMRC and ask them to reduce the payments due in July because you are paying the tax via PAYE then be careful. If they are payments on account and it turns out your revised payments on account don't cover the tax due for 25/6 you will get charged interest. Maybe a better thing to do is ask if the collection of the underpayment via the tax code could be scrapped on the basis you are making the July payments. If nothing else that may flush out whether the underpayments are for 24/5 or some other tax year.

Shylock_249

Perhaps you are experiencing the same situation as myself and my wife.

We were ordered to complete SA for FY 24/25 which we did - we have the same dates as you.

We had both settled our PAYE accounts for FY 24/25 before we were ordered to complete SA and paid the money directly to HMRC - £2045 and £1650.

Having completed the SA wizard both our accounts show that we still owe the money we paid to PAYE.

Google AI suggests that we contact HMRC and get them to show the payments made against our new SA accounts. Google further states that the two systems use different software which doesn't talk to each other.

I phoned PAYE, they said I should phone SA. SA say I should phone PAYE.

I pulling (what little) of my hair out. I'm NOT sure if it was PAYE or SA who advised me that the corrections would be made in June 26.

I personally do NOT like the fact that I'm shown as owing money to anyone least of all HMRC.

I paid the 4 POAs for FY 25/26 immediately after HMRC showed the figures and the site says it will use the later payments to offset the debt! Amazing

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81975998#Comment_81975998

When you do the SA, which is typically 10 months after the financial year closed, you have to declare both your gross pay and taxes already paid via PAYE. The system calculates what your overall tax should be, deducts off what you paid via PAYE and via payments on account and you pay what's left over.

I imagine there are checks and balances in the system to ensure what you declare in the SA matches up with the PAYE records but assuming you can type a number from your P60 and P11d correctly it shouldn't be a problem.