Self assessment - basic query

danwednesday

Get this! I've just spoken to the Revenue and apparently the online system doesn't take into account credits (payments on account) from previous years. I've therefore just paid a tax bill today well in excess of £10,000, which was already paid on account last year. I don't know if this is something that is eventually picked up by the Revenue, but it's certainly worth me going back through my records and checking to see if this has happened in the past.

So let that be a warning to all gullible, ill-informed tax payers (like myself ) - check your own payments before you're scared into paying huge bills you're not liable to pay! I always expect a shock when I'm paying my tax, so the moment I got the 'final payment' figure from my self assessment form I just accepted it and paid it right away - relying on the online system to have got it right and considered previous payments (why wouldn't it!?).

Thanks for helping to straighten out the process for me everyone, I'm more than glad I asked, and shall be expecting a huge rebait within the next week or so, and will be combing the past 5 years of accounts to see if this has happened in the past.

System

The online system will only furnish you with a calculation of that years liability just like the paper system. It's the statement that HMRC send you after the return has been "captured" that takes account of any payments on account made.

The online system is obviously quicker in giving you that calculation and hence getting a statement out to you and so you can leave it later to submit. A paper return has to be in much earlier for HMRC to guarantee to get a statement to you before 31st January. All those people handing in their paper returns this week will be expected to have done the calculation themselves and taken account of the payments they have already made before paying any balance owed and making the first payment on account for 07/08.

silvercar

The online system has a box to enter the amount already paid on account. If you entered this correctly it would tell you the amount still owing (if anything).