Tax return received today

thevinternet

Hi there,

I got a self-assessment statement this morning.

One of the items was '1st payment on account due for year 07/08', but I finished being self-employed in February 2007. Does this mean that this payment is incorrect and I don't owe this money?

Many thanks,
V xx

System

You can ask for the POA to be reduced to nil all you have to do write to your tax office. You should have indicated this on your 06/07 tax return along with the date of cessation of your self-employment.

thevinternet

Lol - thanks for the help. Naturally, I did inform them when I had ceased being self-employed, but maybe they didn't take any notice!!

mrkbrrws

Just because you ceased self employment, HMRC will not automatically reduce payments on account to nil. You have to specifically tick the box on the Tax Return to do so or send in a form SA303.