Payments on Account - How to REDUCE self-assessment payments on account

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  • Опубліковано 29 тра 2024
  • If you complete a self assessment tax return you may be asked to make payments on account towards the following years tax liability. In this video I'm explaining when payments on account apply and I'll show you how to reduce your payments on account.
    Need help with your tax return? Use one of the forms below
    To register for self-assessment (UTR/CIS) click here: bit.ly/utr-number
    If you need help with your Tax Return click here bit.ly/cis-rebate

КОМЕНТАРІ • 22

  • @hammerk08
    @hammerk08 6 місяців тому +11

    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???

    • @tax2ulimited
      @tax2ulimited  4 місяці тому +1

      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.

    • @supersuede91
      @supersuede91 Місяць тому +1

      @@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?

  • @s.e.5957
    @s.e.5957 4 місяці тому +2

    great video, actually showing where to find 'reduce payments on account'. Couldn't find nowhere else, thanks a lot !

    • @tax2ulimited
      @tax2ulimited  4 місяці тому

      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.

  • @RohanGanachari
    @RohanGanachari 4 місяці тому

    Really helpful, thanks!

  • @1976Horizon
    @1976Horizon 4 місяці тому

    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.

  • @jackhopkins9618
    @jackhopkins9618 Місяць тому

    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?

  • @Zero-Investing
    @Zero-Investing Місяць тому

    Is it only interest and not penalties when you don't pay your tax on time?

  • @kamillaelliott8388
    @kamillaelliott8388 5 місяців тому +1

    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

    • @rossewing
      @rossewing 5 місяців тому +2

      Did you find an answer? I'm struggerling to see my POA as well.

    • @tax2ulimited
      @tax2ulimited  4 місяці тому

      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.

  • @rossewing
    @rossewing 5 місяців тому +2

    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?

    • @AM-bo1nn
      @AM-bo1nn 4 місяці тому

      I have the same problem. Did you find a solution? Thanks

    • @tax2ulimited
      @tax2ulimited  4 місяці тому

      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.

  • @neilweedon7321
    @neilweedon7321 4 місяці тому

    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.

    • @ticorrei
      @ticorrei 4 місяці тому

      Trying to understand how that works also because I am ceased my trading

  • @TheBaddesOfThemAll
    @TheBaddesOfThemAll 7 місяців тому

    Where do i put contractors psyment on my tax return for 2 people ? Need information asap 😫

    • @tax2ulimited
      @tax2ulimited  4 місяці тому

      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.

  • @martinvirando5651
    @martinvirando5651 Місяць тому

    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?

  • @sakinaproductions
    @sakinaproductions 2 місяці тому

    This is so unfair. Why are they allowed to do this? Why are we expected to pay next years tax now?

    • @tax2ulimited
      @tax2ulimited  2 місяці тому

      Yes you can say gov and tax are preaty unfair ... but yes they can do that.