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Do I have to pay personal tax 'on account' for next year?

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    #11
    Hmm, yes I'll ask the accountant about negotiating it down as I know I've earned less this year.

    Thanks all!

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      #12
      I got my payment on account reduced. You also don't have to pay it on the due date but interest will apply. I ended up paying both my January and July instalments last month with around 100 sheets of interest.

      It was all fine but the only thing that annoyed me was getting the red letter from HMRC the week after I paid saying if I didn't pay within x days they would take me to court to pay tax on money I hadn't even earned yet.

      Tossers!!!

      Older and ...well, just older!!

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        #13
        And another thing, they'll probably give you a K tax code which means you lose your tax free allowance and pay tax on a higher salary you didn't actually take. They've done that to me twice and I had to get it changed back both times...

        Tossers!!

        Older and ...well, just older!!

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          #14
          Originally posted by ratewhore View Post
          It was all fine but the only thing that annoyed me was getting the red letter from HMRC the week after I paid saying if I didn't pay within x days they would take me to court to pay tax on money I hadn't even earned yet.
          For the current year the 1st payment on account is 31/1/09. If you have genuinely not earned it (e.g. one big divi at the end of the tax year) then you have a legitimate ground to appeal the payment on account.

          If you have earned it (and most will have) then it's not unreasonable to ask you to pay tax on half the year 9 month through the year.

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            #15
            Originally posted by ASB View Post
            If you have earned it (and most will have) then it's not unreasonable to ask you to pay tax on half the year 9 month through the year.
            Are my dates out?
            Older and ...well, just older!!

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              #16
              Originally posted by ratewhore View Post
              Are my dates out?
              I think so. Though the words are confusing.

              http://www.hmrc.gov.uk/sa/dead-pen.htm#3

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                #17
                Originally posted by ASB View Post
                I think so. Though the words are confusing.
                OK. I take that back. Mind you, they are still tossers for giving me a K code multiple times...

                Tossers!!!

                Older and ...well, just older!!

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