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I get confused every year. Can someone confirm to me which year is paid when?
So July 2016- is the balancing payment for what year?
Jan 2017 is what payment for what year?
July 2017?
Why is July always less? I'm confused lol! And this is the 3rd year I've paid on account and still I don't understand!
loocyloo
13-04-2016, 11:12 AM
I get confused every year. Can someone confirm to me which year is paid when?
So July 2016- is the balancing payment for what year?
Jan 2017 is what payment for what year?
July 2017?
Why is July always less? I'm confused lol! And this is the 3rd year I've paid on account and still I don't understand!
sorry - i can't help you either!!! i am always totally confused! i just pay what i'm told to pay!
Simona
13-04-2016, 11:21 AM
I get confused every year. Can someone confirm to me which year is paid when?
So July 2016- is the balancing payment for what year?
Jan 2017 is what payment for what year?
July 2017?
Why is July always less? I'm confused lol! And this is the 3rd year I've paid on account and still I don't understand!
My understanding is you pay for the last years accounts and tax return...do check it out.
The return you submit this April for April 2015 to March 2016 will give HMRC a sum on which you pay tax for that year.
This is because we are self employed and not PAYE where tax is taken every month.
You pay some the following January...the balance is paid in July
Sometimes the amount paid in January is more and July less ...not always
If you store all your Tax return you should be able to know what your payments are ...plus you get confirmation from HMRC with reference to which tax period it refers to.
If you have an accountant he/she will prepare a schedule of tax due
Hope it helps...but do check it for yourself...good luck!
FussyElmo
13-04-2016, 11:32 AM
I get confused every year. Can someone confirm to me which year is paid when?
So July 2016- is the balancing payment for what year?
Jan 2017 is what payment for what year?
July 2017?
Why is July always less? I'm confused lol! And this is the 3rd year I've paid on account and still I don't understand!
Is this where you are paying on account for the following year be side of how much you have earned. So in January yo pay your tax and then on July they ask you to pay on account for the following year :-)
FussyElmo
13-04-2016, 11:34 AM
Is this where you are paying on account for the following year be side of how much you have earned. So in January yo pay your tax and then on July they ask you to pay on account for the following year :-)
This link may help
https://www.gov.uk/understand-self-assessment-bill/payments-on-account
tulip0803
13-04-2016, 12:11 PM
I had to make a half payment on account in Jan 16 for the year 15-16, the other half due in July. I have lost my two biggest earning children last year so have earnt less so I now no longer need to make a payment on account in July as I only owe £12 more than I have already paid on account so I can now pay that £12 in January.
If you make a Jan and July payment this year on account you will have paid most or all of your tax due for 15-16. If you have still earnt enough you will then have to pay half payment on account towards tax due for this tax year xxxx
So julys payment is the rest of what is owed for 15/16 (accurate as I have submitted my tax return) and then January is half of the estimate for 16-17? And then next July is the rest of the 16-17 amount and so on? And is national insurance taken as part of the January payment and that's why it is higher in January? I do keep the returns saved on my computer but I still haven't got my head around it and usually just pay whatever I'm told. I have read the hmrc help already but I just don't seem to understand it