Paying on account
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  1. #1
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    Default Paying on account

    For the first time in tax year 13-14 I earnt enough to need to pay on account. However, I haven't quite got my head around it moving forward - can someone explain? So I filed my tax return back in April 14 and have paid my bill for that now which I understand is the full amount owed from 13-14 plus half again which they consider to be an estimate of half 14-15s bill too. Then in July I will then pay the other estimated payment for 14-15. However I always file my tax return in April so I will already have submitted 14-15 so will they recalculate the payment I make in July or will I pay what they have estimated and then the balance of the bill in the January along with half the estimated for the next year based on actual for 14-15? I am going to be earning more this tax year than last so I think my tax bill will be higher again which is why I ask. Gosh this is confusing!

  2. #2
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    Let say you have to pay £1000 on account for 14/15 and that will be £500 in January and then £500 in July 2015. If you submitted your return in April/May 15 and you don't pay tax you will get a refund of £500 and nothing else would be taken in July but if you had a bill of £800.00 they would reduce the July payment to £300.00. If you had a larger bill I believe that is adjusted and you pay the extra in January as normal.
    Debbie

  3. #3
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    That makes sense thank you chatterbox

 

 

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