SA calculation and on-account payments

[Bikerjon]

When I complete my self assessment online it gives me the calculation at the end with tax due, but why doesn’t this amount reflect the payments I have already made on-account? Is it simply because the systems aren't linked to show the true balancing payment at that point in time? I keep falling into the trap of just paying the full balance due as per the calculation it presents and therefore overpaid again this year!

[Eric Mc]

There are a number of ways of finding out the true amount due.

Log into your Digital Tax Account.

Phone HMRC.

Indeed, if you know how much you paid on account for 2017/18 in January 2018 and July 2018, then you should be able to work out what the balancing payment to settle the overall 2017/18 liability is.

You should also be able to work out what the two 2018/19 Payments on Account are.

You might also be able to work out whether you can exercise the option of reducing the level of the two 2018/19 Payments on Account.

HMRC expects that taxpayers should be able to do all this without HMRC having to tell you anything.

[Bikerjon]

Thanks Eric, with everything being done online I just always seem to expect that once the data has been entered and the calculation has been made then it should be just like paying any other type of bill i.e. if there's already credit on my account - which there usually will be due to the previous Jan/July on account payments - then it should be automatically applied as a deduction on the total amount due.

Self assessment still appears to be a standalone system then.

[Eric Mc]

Integrating existing system and methods with "new fangled" all-dancing digital systems is not easy - especially when talking about something as complex as UK taxation.