Self Assessment pre-payment - WTAF???

[davek_964]

I've just completed my self assessment tax return - needed because I rent out a property. i have been sticking 40% of the rent in an account anyway, so wasn't expecting any nasty surprises. But I still got one:

For 23/24, you owe us £x (by Jan 25) - this I expected.

But for 24/25, you also owe us half of £x in advance (also due by Jan), and you need to pay the other half by June 25.

I did self assessments a few years back and didn't have to do this. Not happy.

I assume that when I do the tax return next year, I'll either end up owing them a small amount since they will have made me pay them the predicted amount a few months after the tax year starts, or they'll owe me.

But basically - within a couple of months of a new financial year you've had to pay the expected tax on money you've not received yet!

Edited by davek_964 on Sunday 5th May 14:13

[davek_964]

Ok, true - not actually in advance. But a damn site earlier than the last time I did a tax return.

By next year I suppose it doesn't make much difference. But for my first tax return it's an unpleasant surprise since I now need to pay 50% more than I was expecting.

[davek_964]

Odd. The first house I rented out was from about 1993 to around 2013, and in all that time I carried out self assessment and was never asked to pay this way.