Payments on Account

[Tommie38]

I’ve just done my self assessment and, in addition to tax for the previous year, I have been asked for payments on account for FY24-25 to be made by end Jan 25 and end July 25.

Although this is the first time I have had to do payments on account, I understand why and have no issues.

My question: If I complete a tax return for FY24-25 before the end of July 25 and the actual tax required is lower, would HMRC automatically adjust the July payment on account down?

I didn’t have enough information to say that tax payable would be lower so did not request an adjustment when submitting the FY23-24 return.

[MaxFromage]

Yes, the tax due by July will be revised down and the payments on account adjusted accordingly.

[Tommie38]

Legend, thank you.

[trickywoo]

At the time of doing the original return you can also request changes to payment on account so that you may not have to pay anything.

[Tommie38]

trickywoo said:

At the time of doing the original return you can also request changes to payment on account so that you may not have to pay anything.

Yes, I noticed. But difficult to tell at this point in time.

[isleofthorns]

Tommie38 said:

I’ve just done my self assessment and, in addition to tax for the previous year, I have been asked for payments on account for FY24-25 to be made by end Jan 25 and end July 25.

Although this is the first time I have had to do payments on account, I understand why and have no issues.

My question: If I complete a tax return for FY24-25 before the end of July 25 and the actual tax required is lower, would HMRC automatically adjust the July payment on account down?

I didn’t have enough information to say that tax payable would be lower so did not request an adjustment when submitting the FY23-24 return.

you can always go to your account on government gateway and adjust the amount you pay on account in advance