tax payment July

[JohnCL]

I have the usual tax statement of account for July but have just submitted last years return which reflects my lesser earnings for 06/7 and shows I need pay on account less this month.
My accountant has said it's ok to pay the lesser amount. Is this correct or should I pay the old demand amount and then wait for a refund. Obviously it would suit me much better to pay the smaller amount now and wait for the Revenue to catch up when they have processed the return but I don't want to incur any penalties.
Thanks
John

[horza]

I was told(in no uncertain terms) to pay the full amount and wait for a refund.

Obviously I didn't though. Just waiting for a reply.

[Eric Mc]

You need to submit a Form SA303 "Application to Reduce 2006/07 Payments on Account" ASAP.

The Revenue will accept the instruction from you to reduce the Payments on Account (POA) without query. You must be careful that you reduce the POA by too much as the Revenue will charge interest if it is obvious by 31 January 2008 that the 2006/07 should have been higher than the figure you reduced them to.

Having said that, if appreopriate, the Payments on Account could be reduced right down to £Nil.