Reducing payments on account.
+ Reply to Thread
Posts 1 to 7 of 7
  1. #1
    ASB
    ASB is offline

    Godlike


    Join Date
    Jul 2005
    Location
    Somerset
    Posts
    5,428
    Thanks (Given)
    50
    Thanks (Received)
    88
    Likes (Given)
    558
    Likes (Received)
    206

    Default Reducing payments on account.

    Last years (15-16) tax return demanded I pay 2k on account jan and 2k july. I.e. a 4k estimate.

    Getting a bit more organised I have done my 16-17 return. The caclulated shortfall is 3k. It wasnt asking for any payment on account for 17-18.

    So rather than pay 2k end july i reduced the payments on account for 15-16 to 1500 (there seems to be no way to just reduce the second payment).

    I have also made a payment of the 1k so all 3k is paid.

    I think this is satisfactory. Anbody know for sure.

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,823
    Thanks (Given)
    141
    Thanks (Received)
    1472
    Likes (Given)
    1783
    Likes (Received)
    6045

    Default

    Dunno. I just pay what I'm told and then feel like I've won the lottery when the tax man gives me money later.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  3. #3
    ASB
    ASB is offline

    Godlike


    Join Date
    Jul 2005
    Location
    Somerset
    Posts
    5,428
    Thanks (Given)
    50
    Thanks (Received)
    88
    Likes (Given)
    558
    Likes (Received)
    206

    Default

    Quote Originally Posted by northernladuk View Post
    Dunno. I just pay what I'm told and then feel like I've won the lottery when the tax man gives me money later.
    Normally thats what i would do. But my situation is changing substantially and i did not want to leave a sum on deposit with hector which will cover my living expenses for a good few months.

  4. #4

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,419
    Thanks (Given)
    40
    Thanks (Received)
    247
    Likes (Given)
    217
    Likes (Received)
    687

    Default

    Just to make sure I understand you right: you've submitted your tax return and your actual tax bill was 1k lower than estimated?

    If so, then you've done the right thing. As you say, a reduction applies to both payments on account so when you get your account statement you'll see two 500 adjustments, one for Jan and one for Jul, leaving you with the 1k balance which you've now paid. Nothing will be due in January.

    You should see this all update on your account within a few weeks.

  5. #5
    ASB
    ASB is offline

    Godlike


    Join Date
    Jul 2005
    Location
    Somerset
    Posts
    5,428
    Thanks (Given)
    50
    Thanks (Received)
    88
    Likes (Given)
    558
    Likes (Received)
    206

    Default

    Cheers TCP, hopefully the sa account will update before i leave the country again in a couple of weeks where i dont have access to my sa account.

    31/7 is patment deadline so i want to make sure it is correct before i go.

  6. #6
    AtW
    AtW is offline

    My post count is Majestic

    AtW's Avatar
    Join Date
    Jul 2005
    Posts
    46,796
    Thanks (Given)
    1204
    Thanks (Received)
    645
    Likes (Given)
    6711
    Likes (Received)
    2317

    Default

    Worst case you'll be charged interest, which on a small amount ain't going to be large.

  7. #7
    ASB
    ASB is offline

    Godlike


    Join Date
    Jul 2005
    Location
    Somerset
    Posts
    5,428
    Thanks (Given)
    50
    Thanks (Received)
    88
    Likes (Given)
    558
    Likes (Received)
    206

    Default

    Quote Originally Posted by AtW View Post
    Worst case you'll be charged interest, which on a small amount ain't going to be large.
    That will only be a squirrel or two. But website talks about a penalty. It is not clear to me though. I recall 5% and that would be annoying.

    Still the 2 payments made are equal to the amount underpaid on tbe filed 16/17 return I am hopeful it is correct.

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.