Payment On Account

[Bumfluff]

Hi,

I make payments on account for my personel tax, first payment for tax yr 2007-2008 is due on Jan 31st, next payment 31st July. I dont think I will earn as much in 07-08 as I did in 06-07. After I have made my payment on account on the 31st Jan, come April 08 I will know what I owe 07-08, can I can change my second payment on account to be paid on the 31st July to pay the balance of what I truely owe, or Im I stuck paying what they estimated I owe based on 06-07 return then have to claim the diff back ?

[Gonzo]

I don't know whether this is possible or not.

But there is no reason why you can't submit your 2007/2008 tax return in August and you should get a speedy refund.

I have had refunds in the past (before contracting) and they always came back within 3 weeks if I submitted my tax return at that time of year.

[XLMonkey]

Yup, you can do so by submitting your tax return early. However, from memory you still have to contact the tax office in order to ask them to remove the requirement for the payment on account. Otherwise they will only match your payment on account to your tax return in January of the following year.

[malvolio]

Hector does actually understand that people's incomes are not always consistent. You can appeal for either a reduction or even a complete cancellation, all you need do is write to your tax office and tell them why you think you need to do so. Snag is, if you get it wrong you will have to pay interest on the underpaid amount.

If you have a good idea what you are going to earn, and hence what you are likely to owe, tell them and agree with them what the payments are to be.

[minstrel]

Yup, you can do so by submitting your tax return early. However, from memory you still have to contact the tax office in order to ask them to remove the requirement for the payment on account. Otherwise they will only match your payment on account to your tax return in January of the following year.

If you submit your tax return online before 31st July it works it all out and adjusts you July payment automatically. No need to contact tax office separately to ask them to reduce payment.

I did it this year, so I know it works if you submit online. Not sure whether it works automatically if you do a paper return though.

[XLMonkey]

I did it this year, so I know it works if you submit online. Not sure whether it works automatically if you do a paper return though.

it was paper for me... oh well, maybe there are advantages to using t'internet after all