Quick bit of help with self assessment please

[TheBALDpuma]

Hey,

For some reason last year was the first year my self assessment asked me to make payments for the next years tax.

So (not actualy figures) last year I paid £1000 tax for 2013/14 in Jan 14, and £500 for 2014/2015 in Jan 14, and again in July 14. So, I have already paid £1000 towards my 2014/15 tax bill. I have filled out my return for 2014/15 online today, and I can't figure out how to make it take into account the money I have already paid. Where do I enter this in?

I have called HMRC, but after going through 5 or 10 minutes of automated question answering the robot said they were too busy, and to cal them back later!

[Eric Mc]

TheBALDpuma said:

Hey,

For some reason last year was the first year my self assessment asked me to make payments for the next years tax.

So (not actualy figures) last year I paid £1000 tax for 2013/14 in Jan 14, and £500 for 2014/2015 in Jan 14, and again in July 14. So, I have already paid £1000 towards my 2014/15 tax bill. I have filled out my return for 2014/15 online today, and I can't figure out how to make it take into account the money I have already paid. Where do I enter this in?

I have called HMRC, but after going through 5 or 10 minutes of automated question answering the robot said they were too busy, and to cal them back later!

It's a pity you didn't give more realistic figures. Also, there is a £1,000 threshold for payments on account so it isn't a great figure to use as a hypothetical.

Lets pretend your 2013/14 tax liability was £1,500 (rather than £1,000).

On 31 January 2015 you had to pay that £1,500 to HMRC in total.
You also had to make Payments on Account for tax year 2014/15. These would have been for £750 each £1,500 @ 50%) - the 1st payable on 31 January 2015 and the second on 31 Jul;y 2015.

This means you needed to pay £2,250 to HMRC (£1,500 plus £750) on 31 January 2015 and £750 on 31 July 2015.

You have now completed your 2014/15 self assessment return. Let's pretend it shows a tax liability for 2014/15 of £2,100.
You have already paid £1,500 on account for 2014/15 £750 x 2). This means you only have to pay the balance of £600 clear your 2014/15 liability. This £600 amount is payable on 31 January 2016.

Because your actual tax liability for 2014/15 is greater than £1,000, you will also be asked to make Payments on Account for 2015/16. These would be set at £1,050 each £2,100 @ 50%) - payable on 31 January 2016 and 31 July 2016.
This means the amount you need to pay to HMRC on 31 January 2016 is £1,650 made up of the balance to clear the 2014/15 liability of £600 and the 1st 2015/16 Payment on Account of £1,050.

The Payment on Account amounts are automatically set at 50% of the previous year's tax liability. If you KNOW that your actual 2015/16 is going to be lower than £2,010 (the 2014/15 liability) , you can apply to have the Payments on Account reduced to a more realistic amount - including Nil if appropriate.

[Wilmslowboy]

TheBALDpuma said:

Hey,


I have called HMRC, but after going through 5 or 10 minutes of automated question answering the robot said they were too busy, and to cal them back later!

Ring the payment line...they answer that quicker
they will then put you through...worked for me earlier in the week

[TheBALDpuma]

Eric Mc said:

TheBALDpuma said:

Hey,

For some reason last year was the first year my self assessment asked me to make payments for the next years tax.

So (not actualy figures) last year I paid £1000 tax for 2013/14 in Jan 14, and £500 for 2014/2015 in Jan 14, and again in July 14. So, I have already paid £1000 towards my 2014/15 tax bill. I have filled out my return for 2014/15 online today, and I can't figure out how to make it take into account the money I have already paid. Where do I enter this in?

I have called HMRC, but after going through 5 or 10 minutes of automated question answering the robot said they were too busy, and to cal them back later!

It's a pity you didn't give more realistic figures. Also, there is a £1,000 threshold for payments on account so it isn't a great figure to use as a hypothetical.

Lets pretend your 2013/14 tax liability was £1,500 (rather than £1,000).

On 31 January 2015 you had to pay that £1,500 to HMRC in total.
You also had to make Payments on Account for tax year 2014/15. These would have been for £750 each £1,500 @ 50%) - the 1st payable on 31 January 2015 and the second on 31 Jul;y 2015.

This means you needed to pay £2,250 to HMRC (£1,500 plus £750) on 31 January 2015 and £750 on 31 July 2015.

You have now completed your 2014/15 self assessment return. Let's pretend it shows a tax liability for 2014/15 of £2,100.
You have already paid £1,500 on account for 2014/15 £750 x 2). This means you only have to pay the balance of £600 clear your 2014/15 liability. This £600 amount is payable on 31 January 2016.

Because your actual tax liability for 2014/15 is greater than £1,000, you will also be asked to make Payments on Account for 2015/16. These would be set at £1,050 each £2,100 @ 50%) - payable on 31 January 2016 and 31 July 2016.
This means the amount you need to pay to HMRC on 31 January 2016 is £1,650 made up of the balance to clear the 2014/15 liability of £600 and the 1st 2015/16 Payment on Account of £1,050.

The Payment on Account amounts are automatically set at 50% of the previous year's tax liability. If you KNOW that your actual 2015/16 is going to be lower than £2,010 (the 2014/15 liability) , you can apply to have the Payments on Account reduced to a more realistic amount - including Nil if appropriate.

I'm aware of all of this...

What I'm getting at is last year I paid the 2013/14 bill, and the 50% for 2014/15 in Jan and July.

I've just done 2014/15 return. On the bit just before I submit it, it does not take these payments into account. Aka it's asking for ~£1800 tax (actual), not subtracting around £1150 of tax I've already paid. Will it take this into account when I submit it? Or do I need to enter it into the tax return at some point?

[TheBALDpuma]

Wilmslowboy said:

TheBALDpuma said:

Hey,


I have called HMRC, but after going through 5 or 10 minutes of automated question answering the robot said they were too busy, and to cal them back later!

Ring the payment line...they answer that quicker
they will then put you through...worked for me earlier in the week

I will give this a go if I don't get an answer!

I used to ring the off shore line, which was a direct line to a person last year! Not this year though.

[Eric Mc]

The tax return does not give you any details as to how much you actually have to pay. All it does is calculate the actual liability arising for the relevant tax year. The payment of the tax amounts due is based on the state of your "account" at HMRC - which will be a combination of liabilities less balancing payments, payments on account and perhaps interest and penalties if payments haven't been made on time in the past.

HMRC usually issues a number of "Statements of Account" to taxpayers at or near the points in the year when tax is payable.

Can you access your "account" at HMRC?

As an accountant, I can look at the "tax accounts" of all the clients of which I am the authorised on-line filing agent so I can check and see how much they need to pay at any given time.

[GlenMH]

TheBALDpuma said:

I will give this a go if I don't get an answer!

I used to ring the off shore line, which was a direct line to a person last year! Not this year though.

I used the web chat thingy on the website. Got a call back within 24 hours...

[TheBALDpuma]

Eric Mc said:

The tax return does not give you any details as to how much you actually have to pay. All it does is calculate the actual liability arising for the relevant tax year. The payment of the tax amounts due is based on the state of your "account" at HMRC - which will be a combination of liabilities less balancing payments, payments on account and perhaps interest and penalties if payments haven't been made on time in the past.

HMRC usually issues a number of "Statements of Account" to taxpayers at or near the points in the year when tax is payable.

Can you access your "account" at HMRC?

As an accountant, I can look at the "tax accounts" of all the clients of which I am the authorised on-line filing agent so I can check and see how much they need to pay at any given time.

Yeah I think I've found the part of the website that says they've got £1100 odd of my money.

So in the simplest of terms - when I submit my tax return I don't need to tell it what I've already paid, I just need to pay the balance left by the 31st?

[Eric Mc]

Exactly.

Get the return in - and your account with HMRC will be automatically updated to take into account the correct liability for 2014/15. And what you have already paid "on account" will be automatically offset.