i'm really struggling to understand why we're expected to pay in advance for the following year - why can't you just pay what you owe for each year without having to pay it forward as well???
I know ... it is not fun to pay in advance ... is just one of many HMRC rules that we need to follow. If your tax due is under 1k they will not ask to Advance payments on account.
@@tax2ulimited Now the tax year has ended... how do I apply previous payments on account onto my tax bill? Does it do it automatically? Where can I see that?
Hi Adam, thanks for posting the video it was really helpful. I am currently doing my 2023-2024 tax return and want to reduce my payments on account for the 2024-2025 tax year because my self employed income will reduce to around the figure of my PTA (£12500 - £13000) and will be like this for the next year or two, as I am doing 2-3 days of childcare a week. I am bit concerned about reducing the payments on account to zero as I still want to pay to class 2 & 4 NICs. Do you have any advice about what this figure should be & how to work this out please? Any help would be greatly appreciated. Many thank you's. James
Hello Adam, I am ‘glued’ to your videos learning …..however, I have 3-month void period this year in my rented property so no income of let’s say £3.6k in 2023/24. Also, I am upgrading the flat and expect capital expenditure (new boiler, new flooring) relief on new assets within a region of £4K increase in expenses on the top of my usual running the property rental costs. Do I just lump these two sums 3.6+4=7.6x0.4=£3k and request reduction of £3k on account for tax year 2023/24? Thanks in advance for your assistance. I am also getting in touch with your firm to assist me on separate issue currently ongoing with HMRC.
brilliant video. I have just submitted my 23-24 tax return, and I have overpaid my tax bill by £700 for the year. How do I go about claiming the refund? Or does it automatically get deducted off of my payments on account for 24-25?
the whole point of SA was supposed to be tax was retrospective but with forced POA you have to find double money. its a rip off draining small business.
I've come to do my self assessment for 2022-23 having paid £3000 POA in Jan 2023 and July 2023, but i don't see the deduction in my calculation nor where i can add it? Any ideas?
Good questions. You cannot add it anywhere. After the submission of 2022-2023, HMRC will send you a Statement of Account, in which the POA will be accounted for. The tax liability for the current year (balancing charge) will be lowered by the amount paid as POA.
What I don't understand is why the payments on account I've made for this year don't appear on my self assessment tax calculation. The total tax paid only lists what was deducted by an employer, not what I paid on account. Is there somewhere I should have entered them on the tax return that I missed? Thank you
No you do not have to entered it. After the submission of 2022-2023, HMRC will send you a Statement of Account, in which the POA will be accounted for. The tax liability for the current year (balancing charge) will be lowered by the amount paid as POA.
If I ceased trading within the 2022-2023 tax year (and notified the HMRC), why do I still need to pay next years payment on account and if not how do I change this? Many thanks.
when inputting the reduced payments on account - it says "enter the reduced amount of your first payment below" - does this not apply to your second payment? or does it assume you want your second payment reduced to the same amount? It doesnt ask you to do the same for a second payment, so what happens to the 2nd payment amount?cant find an answer to this anywhere!
So let's say you live off dividends from your own limited company... Really you should save the tax twice (whatever bracket that you are in) knowing HMRC will alway take next years?
Sorry for the late response I missed this. You will add it under expense as salary paid. If you need our help, just sends us an email to info@tax2u.co.uk and we can provide a competitive price and help you with your specific situation.
Payment on account is why so many small businesses go under. It’s just not fair to pay tax in advance. I don’t ask my customers to pay me a year in advance before I do work for them ! I can’t predict the future and know what my workload will be. Paying tax in advance leaves a business running on its bear bones. It’s a joke the whole system is a joke no wonder we see so little growth in this country. Everything is taken from small businesses before they can find their feet. I’ve had enough I really have, I work my ass off to give the tax man everything I have. 🤯 no life in this country, cant even get health care when you need it, but the tax man can have all my money up front before I earn anything 😏ffs🤯
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great video, actually showing where to find 'reduce payments on account'. Couldn't find nowhere else, thanks a lot !
You are welcome ! If you need more help just sends us an email to info@tax2u.co.uk and we can provide a competitive price.
i'm really struggling to understand why we're expected to pay in advance for the following year - why can't you just pay what you owe for each year without having to pay it forward as well???
I know ... it is not fun to pay in advance ... is just one of many HMRC rules that we need to follow. If your tax due is under 1k they will not ask to Advance payments on account.
@@tax2ulimited Now the tax year has ended... how do I apply previous payments on account onto my tax bill? Does it do it automatically? Where can I see that?
Hi Adam, thanks for posting the video it was really helpful. I am currently doing my 2023-2024 tax return and want to reduce my payments on account for the 2024-2025 tax year because my self employed income will reduce to around the figure of my PTA (£12500 - £13000) and will be like this for the next year or two, as I am doing 2-3 days of childcare a week. I am bit concerned about reducing the payments on account to zero as I still want to pay to class 2 & 4 NICs. Do you have any advice about what this figure should be & how to work this out please? Any help would be greatly appreciated. Many thank you's. James
Really helpful, thanks!
Hello Adam, I am ‘glued’ to your videos learning …..however, I have 3-month void period this year in my rented property so no income of let’s say £3.6k in 2023/24. Also, I am upgrading the flat and expect capital expenditure (new boiler, new flooring) relief on new assets within a region of £4K increase in expenses on the top of my usual running the property rental costs. Do I just lump these two sums 3.6+4=7.6x0.4=£3k and request reduction of £3k on account for tax year 2023/24? Thanks in advance for your assistance. I am also getting in touch with your firm to assist me on separate issue currently ongoing with HMRC.
brilliant video. I have just submitted my 23-24 tax return, and I have overpaid my tax bill by £700 for the year. How do I go about claiming the refund? Or does it automatically get deducted off of my payments on account for 24-25?
the whole point of SA was supposed to be tax was retrospective but with forced POA you have to find double money. its a rip off draining small business.
I've come to do my self assessment for 2022-23 having paid £3000 POA in Jan 2023 and July 2023, but i don't see the deduction in my calculation nor where i can add it? Any ideas?
I have the same problem. Did you find a solution? Thanks
Good questions. You cannot add it anywhere. After the submission of 2022-2023, HMRC will send you a Statement of Account, in which the POA will be accounted for. The tax liability for the current year (balancing charge) will be lowered by the amount paid as POA.
Is it only interest and not penalties when you don't pay your tax on time?
What I don't understand is why the payments on account I've made for this year don't appear on my self assessment tax calculation. The total tax paid only lists what was deducted by an employer, not what I paid on account. Is there somewhere I should have entered them on the tax return that I missed? Thank you
Did you find an answer? I'm struggerling to see my POA as well.
No you do not have to entered it. After the submission of 2022-2023, HMRC will send you a Statement of Account, in which the POA will be accounted for. The tax liability for the current year (balancing charge) will be lowered by the amount paid as POA.
Be careful not to overdo any claim to reduce...www.gov.uk/hmrc-internal-manuals/enquiry-manual/em4660
If I ceased trading within the 2022-2023 tax year (and notified the HMRC), why do I still need to pay next years payment on account and if not how do I change this? Many thanks.
Trying to understand how that works also because I am ceased my trading
when inputting the reduced payments on account - it says "enter the reduced amount of your first payment below" - does this not apply to your second payment? or does it assume you want your second payment reduced to the same amount? It doesnt ask you to do the same for a second payment, so what happens to the 2nd payment amount?cant find an answer to this anywhere!
You don't have to. It does it for both
So let's say you live off dividends from your own limited company... Really you should save the tax twice (whatever bracket that you are in) knowing HMRC will alway take next years?
Where do i put contractors psyment on my tax return for 2 people ? Need information asap 😫
Sorry for the late response I missed this. You will add it under expense as salary paid. If you need our help, just sends us an email to info@tax2u.co.uk and we can provide a competitive price and help you with your specific situation.
This is so unfair. Why are they allowed to do this? Why are we expected to pay next years tax now?
Yes you can say gov and tax are preaty unfair ... but yes they can do that.
What a ridiculous rule, who came up with this idea? What if people don't have money to pay 150% of their tax bill??
Payment on account is why so many small businesses go under. It’s just not fair to pay tax in advance. I don’t ask my customers to pay me a year in advance before I do work for them ! I can’t predict the future and know what my workload will be. Paying tax in advance leaves a business running on its bear bones. It’s a joke the whole system is a joke no wonder we see so little growth in this country. Everything is taken from small businesses before they can find their feet. I’ve had enough I really have, I work my ass off to give the tax man everything I have. 🤯 no life in this country, cant even get health care when you need it, but the tax man can have all my money up front before I earn anything 😏ffs🤯