HMRC payment request by 31 July

[Gep]

Hello everybody, apologies if this is a trivial question, but I've never been in this situation before.
The HMRC just sent me a request for the "2nd payment on account due for year 21/22"

In January 2022 I already paid for:
- All the taxes due for 2020-21
- 1st payment on account due for year 21/22 (based on an estimate i.e. the assumption that this year I will have to pay the same as the previous year)

It's the first time I paid taxes this way so I'm a bit confused.

Why do they want me to pay before the end of July the "2nd payment on account due for year 21/22" based on an estimate?
Since that tax year finished in April 2022 I now have all the data to calculate the correct amount.

I'm asking because I know the actual amount this year will be much lower than the previous year so I'm a bit annoyed at paying all that money in advance (and then get them back next year I presume?)

Can I send my self-assessment for 21/22 now and pay the correct amount?
Many thanks,
Gep

[Neelix]

I suspect you are too late to get the amount changed for July.

Do you submit your return or does an accountant do it for you?

[SouthernDave]

This is why you need a good accountant.

[Gep]

I suspect you are too late to get the amount changed for July.

Do you submit your return or does an accountant do it for you?

For tax year 2021/22 I would normally submit my self-assessment in January 2023 myself.

[jpkeates]

Can I send my self-assessment for 21/22 now and pay the correct amount?

No, but only because I'm fairly sure it's too late to change the amount now.

It'll only happen once, and it'll mean that you pay less next January.

[Gep]

This is why you need a good accountant.

I've done self-assessments for 10 years, never needed an accountant.
I only have my job (PAYE) and one rental property, which is really simple.

The real issue is that we can no longer offset the morgage interests against taxes, so suddenly the income from my rental has become a big percentage of my overall income. I believe that's why this year in January they asked me to pay taxes for 21/22 in advance (instead of January 2023 as usual). I'm ok with that, but annoyed that I have to pay based on an estimate, when I could easily calculate the actual correct amount.

[Gep]

No, but only because I'm fairly sure it's too late to change the amount now.

It'll only happen once, and it'll mean that you pay less next January.

Thank you. So if I had done the calculation for 2021/22 in April and sent them the self-assessment, they would have requested the correct amount to be payed by end of July?
I must remember for next year!

[jpkeates]

.So if I had done the calculation for 2021/22 in April and sent them the self-assessment, they would have requested the correct amount to be payed by end of July?
I must remember for next year!

It probably won't matter next year if this year's income is more what you'd expect.
Because next year's amount will probably be just about right.

As I understand it, you can contact HMRC to agree a changed amount.
But I've never done it, and I have no idea how easy it might be in practice.

The variation for me has never been a real issue, and I set aside an amount for my tax each month, anyway, it doesn't really make any difference.

[Neelix]

The only time I had my July payment adjusted was when I bought my new van.

I gave my books to my accountant in mid April and he dealt with the tax man.

my July payment turned into a huge tax repayment from HMRC

I was under the impression that HMRC wanted LL’s to adjust their tax codes down from now on but I could be wrong

[SouthernDave]

I've done self-assessments for 10 years, never needed an accountant.
I only have my job (PAYE) and one rental property, which is really simple.

The real issue is that we can no longer offset the morgage interests against taxes, so suddenly the income from my rental has become a big percentage of my overall income. I believe that's why this year in January they asked me to pay taxes for 21/22 in advance (instead of January 2023 as usual). I'm ok with that, but annoyed that I have to pay based on an estimate, when I could easily calculate the actual correct amount.

Payments on account are a pain, but a good account at will manage these for you, amongst other things. An accountant should save you time and money which will be more than what you pay them (assuming you make a decent amount off your self assessment income)

[Gordon999]

Can I send my self-assessment for 21/22 now and pay the correct amount?

Yes, if you send in your 21/22 tax return now , you can reduce the 2nd payment demanded at end of July 2022 to the correct tax payment for 21/22.

[Neelix]

https://www.gov.uk/government/public...-account-sa303

[Another Fine Mess]

Although the Accountant I use did my self assessment for when I had a business, I have since retired and my income now is a lot less than when I was working. I still get my Accountant to submit my self assessment forms including my rental figures, and he charges me £200 plus Vat. Why dont you ask one locally for a price.
(I had to use the Accountant to submit a CGT return when I sold some business premises which I had bought in 1983 and some of the documents (costings) were missing, so some were estimated, The Revenue accepted my Accountants submission)