Tax - Payment on Account

WhoopieDoodle

Good afternoon folks.

I wonder if someone could tell me, am I right in thinking that if my tax bill is less than £500 I do not have to make a payment on account?

Also, when I submit my tax return (I'm self-employed and had no tax to pay 06/07 but will owe approximately £150 this tax year 07/08) when do I have to make the payment? Is it January 31st?

Sorry for this, but I've been reading the HMRC website and my brain cell is feeling rather frazzled!

Thanks in advance for your replies.

Mark85_2

Hi there WhoopieDoodle,

After having a quick scan of the HMRC website, you are indeed correct. If your income tax from the previous year was less than £500, you do not have to make a payment on account.

As for your other question regarding dates, the first payment of account for tax year 07/08 will be January 31st next year but this is where I'm slightly confused. If the liability is only £150, surely a payment wont be due? I'm not comletely clued up on self assessment etc but this has thrown me a bit!

Maybe someone else can shed a bit more light.

Mikeyorks

Broadly correct on both counts :

No interim payment to make if your previous year liability was less than £500. And the balancing payment of £150 will be due on or before 31st Jan 09.

WhoopieDoodle

Thank you so much mark and mike I'm feeling pleased that my brain cell is not as defunct as I thought!

Again, thank you for your time.

Have a nice weekend.