Reducing payments on account.

[ASB]

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.

[AtW]

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

[ASB]

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.

[TheCyclingProgrammer]

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.

[ASB]

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.

[northernladuk]

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.

[ASB]

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.