Last FY (2019/2020) my personal tax was significantly hire after my wife took a sabbatical from work and hence my dividends were higher.
That resulted in a hefty 'Payment on account for next year' as per the usual HMRC rules
This FY (2020/2021) my dividends have returned to the normal level and by my calculations my personal tax will be around £5,000 less than I actually paid for this year's accounts.
Does anyone know how the refund is worked out and then paid?
For example, I paid £9,000 in 2 instalments for my POANY
My personal tax this year will be about £4,000 leaving an over payment of £5000
However, based on a tax bill of £4,000 for this year, I'd epxect to have to make 2 x £2000 payments (Jan 2022/Jul 2022) for next year's accounts
So, my question is - will I get the £5,000 back in a lump sum, then be expected to make the usual POANY payments]
OR
Will my POANY be deducted from my refund, netting me about £1000, but leaving me without any POANY payments to make in Jan/July 2022
Apologies if this is a daft question, but any advice would be great
That resulted in a hefty 'Payment on account for next year' as per the usual HMRC rules
This FY (2020/2021) my dividends have returned to the normal level and by my calculations my personal tax will be around £5,000 less than I actually paid for this year's accounts.
Does anyone know how the refund is worked out and then paid?
For example, I paid £9,000 in 2 instalments for my POANY
My personal tax this year will be about £4,000 leaving an over payment of £5000
However, based on a tax bill of £4,000 for this year, I'd epxect to have to make 2 x £2000 payments (Jan 2022/Jul 2022) for next year's accounts
So, my question is - will I get the £5,000 back in a lump sum, then be expected to make the usual POANY payments]
OR
Will my POANY be deducted from my refund, netting me about £1000, but leaving me without any POANY payments to make in Jan/July 2022
Apologies if this is a daft question, but any advice would be great
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