Half tax for current tax period due by end of January (for the first time)

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    Half tax for current tax period due by end of January (for the first time)

    Hello everybody,
    I've just done my self-assessment for 2019-2020 and for the first time I've been asked to pay in advance half the tax for the current tax period, 2020-21 (see below).

    My self-assessment is rather simple, I only have my job and 1 rental property and none of that has changed in the past 5 years.

    Is anything changed in terms of tax rules?

    Many thanks in advance for any info!

    From the HMRC Website

    Total Income Tax due ________________________________________________ £7,000

    Estimated payment due by 31 January 2021
    You must pay the total of any tax and class 4 NIC due for 2019-20 plus first payment on account due for 2020-21 by 31 January 2021

    (Note: 2nd payment of £3,500 due 31 July 2021)
    This amount does not take into account any 2019-20 payments on account you may have already made

    2019-20 balancing payment __________________________________________ £7,000

    1st payment on account for 2020-21 due 31 January 2021 ____________ £3,500
    Total due by 31 January 2021 ________________________________________ £10,500

    Yes, there has been a change in how HMRC are collecting tax.
    The request for advance payment on account is now standard.

    I don't know if the regulations themselves have changed, but it's been like this for me for a few years and seems to be being rolled out more widely.
    To be honest, as I set aside an amount each month to cover the tax, it hasn't made a lot of difference personally.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


      About 4 years ago, the mortgage interest was no longer fully allowed expense against rental income. This causes some landlords in 40% tax bracket to pay more tax on rental income. It becomes more noticeable when the advance payment for current year tax is demanded.


        Look out for 'Making Tax Digital' which will require us to pay quarterly - introduction coming shortly (although it keeps moving back!).

        Given that you have nearly a year to pay the tax on your profits you can see why HMRC wants you to pay half of it early!


          This happened to me for the first time this year, and I am a landlord living abroad. I spoke to HMRC , they offered to lower the 2 part payments , but said if i ended up owing more, then they would penalize me, but if i ended up owing less , they give it back plus interest. i went with the second option


            I save money each month in my premium bond account for my tax ....


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