Payments on account

littlemoney

Sorry back again with another long self assessment question as I progress through the sections of self assessment.

I have reached Overpaid tax section where:

If you think you have paid too much tax you must tell HM Revenue and Customs (HMRC) where you want any repayment to be sent

Do you complete section and your bank details if not sure if you have over paid tax or not.

Also I paid an accountant to do my 2024/25 return (previously on PAYE only) which calculated what I owed for 2024/25 that I had to make 2 payments on account for 2025/26.These payments were made.

But looking at my P60 for 2025/26 my tax code channged prior to the 2024/25 self assessment submission and the payments on account.

By my calaculation, I may have paid more on account for 2025/25 than I need to. However I may be wrong.

Is this regarded as an overpayment if HMRC agrees?

But I am even more confused that when I get to the View Calculation section it states I still owe money for 2025/26 approx £300 but also says:

It does not take into account any 2025 to 2026 payments on account you may have already made or any other amounts outstanding

So has it disregarded both payments already make on account for 2025/26 and I am owed all that money.

Sorry, just getting very confused with tax being taken by PAYE and Self Assessment.and what has been taken into account and what hasn't.

eskbanker

Your 2025/26 self-assessment is all about establishing your income tax liability (if any) specifically for that tax year, and, as it says, this ignore any payments on account.

The (separate) calculation of whether payments on account offset that liability is shown within your SA account, as explained at https://www.gov.uk/understand-self-assessment-bill/payments-on-account

DRS1

I have reached Overpaid tax section where:

If you think you have paid too much tax you must tell HM Revenue and Customs (HMRC) where you want any repayment to be sent

Do you complete section and your bank details if not sure if you have over paid tax or not.

Personally I would complete the bank details in your situation. It sounds like there may be some refund due.

LITRG

Hi OP. Payments on account can be difficult to understand. You may find out guidance on this helpful. We have worked examples -

Self assessment tax payments | Low Incomes Tax Reform Group

We also published an article on payments on account in January which provides some more detailed information.

Tax bill higher than you expected? Don’t forget payments on account! | Low Incomes Tax Reform Group

I hope this helps.

littlemoney

https://forums.moneysavingexpert.com/discussion/comment/82127755#Comment_82127755

Am I correct in assuming that the next stage "View your Calculation" and i then save and submit return this will update my account

It will also link the return to the previously made payments on account and recalculate the payment due on 31 January 2027 to zero plus show a refund is due.

eskbanker

Yes, once your 2025/26 liability is calculated, it's reconciled against payments on account within your SA account.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82128579#Comment_82128579

Your calculation is not linked to your personal tax account until you submit it.

Once you submit it the computer will link it, process it and take into account any payments on account that you have made to bring out your final liabilty or refund situation.

If you complete the section with your bank account details any refund will be sent direct to your bank account.