HELP!! Self Assessment Tax Return Reducing Payment on Account
Hi all!
I'm almost finished completing my tax return but it's asking if I want to reduce payment on account- no idea what this means!!
I work full time and part time (self employed) and for 2022 to 2023 I owe £2000 tax plus £1000 for 2023 to 2024 which means I need to pay £3000. It says I can claim to reduce payment on account if I think I am going to earn less than last year which I don't know to be honest. Its asking for figures of predicting how much i am going to earn next year and ive not got a clue. I don't mind to pay £3000 now (got loads saved up) - is there a way I can say NO to the claim and just pay what I owe now- I just want to get it done 😭😭 I don't want to get it wrong!! Please help me!!!
I'm almost finished completing my tax return but it's asking if I want to reduce payment on account- no idea what this means!!
I work full time and part time (self employed) and for 2022 to 2023 I owe £2000 tax plus £1000 for 2023 to 2024 which means I need to pay £3000. It says I can claim to reduce payment on account if I think I am going to earn less than last year which I don't know to be honest. Its asking for figures of predicting how much i am going to earn next year and ive not got a clue. I don't mind to pay £3000 now (got loads saved up) - is there a way I can say NO to the claim and just pay what I owe now- I just want to get it done 😭😭 I don't want to get it wrong!! Please help me!!!
Original post by Harmonylove98
Hi all!
I'm almost finished completing my tax return but it's asking if I want to reduce payment on account- no idea what this means!!
I work full time and part time (self employed) and for 2022 to 2023 I owe £2000 tax plus £1000 for 2023 to 2024 which means I need to pay £3000. It says I can claim to reduce payment on account if I think I am going to earn less than last year which I don't know to be honest. Its asking for figures of predicting how much i am going to earn next year and ive not got a clue. I don't mind to pay £3000 now (got loads saved up) - is there a way I can say NO to the claim and just pay what I owe now- I just want to get it done 😭😭 I don't want to get it wrong!! Please help me!!!
I'm almost finished completing my tax return but it's asking if I want to reduce payment on account- no idea what this means!!
I work full time and part time (self employed) and for 2022 to 2023 I owe £2000 tax plus £1000 for 2023 to 2024 which means I need to pay £3000. It says I can claim to reduce payment on account if I think I am going to earn less than last year which I don't know to be honest. Its asking for figures of predicting how much i am going to earn next year and ive not got a clue. I don't mind to pay £3000 now (got loads saved up) - is there a way I can say NO to the claim and just pay what I owe now- I just want to get it done 😭😭 I don't want to get it wrong!! Please help me!!!
Self assessment means you pay tax later than if you had earned the money via a salary etc. For this reason they try to predict how much tax you will owe for the future year and charge you half of this in advance. That is call payment on account.
If you believe you will make less next year than in the past then you can request to lower the payment on account. They may ask for income estimates.
If you lower the amount but then do make more income than expected then you will have to pay the additional tax owed plus potentially interest on the amount you were under by.
It may be worth paying the ~£250 annually for a basic accountant to assist.
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