Tax return question

[scarps]

Im self employed and I doing my tax return for 2022-23. Past 5 years I have always filled my return in January, last minute thing, this year I'm having to do it earlier and have stumbled across something I didn't see in previous returns.

Basically when I get to the Tax calculation page it says

Total amount due for 2022-23. £xxxx This is how it normally is

However it is also saying

First payment on account for 2023-24 £xxxx

Total to be added to Self Assessment account due by 31 January 2024 £xxxx It adds both 22/23 and 22/24 together.

Ive not had this before and not really sure what its doing, seems its just adding next years tax estimate? onto my return as then is says
Second payment on account for 2023-24 will be due by 31 July 2024 £xxxx
It does say if in help section underneath, If you expect your 2023 to 2024 income to be lower than your 2022 to 2023 income, you may want to reduce your 2023-24 payments on account.

But I don't expect my income to be lower though so not sure whats going on.

Any help would be great

 

[Sui]

Don’t know the full rules off the top of my head, but I believe if most of your taxable income is self employed/sole trader then you are meant to follow the payment on account procedure.

That means you’ll do 2 payments to HMRC, each equalling 50% of last years tax bill on 31st Jan & 31st July. With any balancing figure due on the 31st Jan the following year.

After a quick google, this link may explain better! https://www.wellersaccountants.co.uk/blog/payment-on-account?hs_amp=true

 

[scarps]

Don’t know the full rules off the top of my head, but I believe if most of your taxable income is self employed/sole trader then you are meant to follow the payment on account procedure.

That means you’ll do 2 payments to HMRC, each equalling 50% of last years tax bill on 31st Jan & 31st July. With any balancing figure due on the 31st Jan the following year.

After a quick google, this link may explain better! https://www.wellersaccountants.co.uk/blog/payment-on-account?hs_amp=true

OK thanks, though normally when I have done a last minute tax return in January, I will have to pay the whole amount by January 31st.

Thing I'm not sure on is why its adding an amount for 23/24 and its due by Jan 24 and then another amount due by July 24 which Ive not had on the past 5 tax returns Ive done.

 

[booyaka]

payment every 6 months is standard for me, always has been for years like that.

The deadlines for paying your tax bill are usually:

31 January - for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account (for next year)

31 July for your second payment on account

That's been standard for years and years now.

 

[Freakbro]

OK thanks, though normally when I have done a last minute tax return in January, I will have to pay the whole amount by January 31st.

Thing I'm not sure on is why its adding an amount for 23/24 and its due by Jan 24 and then another amount due by July 24 which Ive not had on the past 5 tax returns Ive done.

Have you had a tax bill over £1,000 before? As you don't make the on account payments if it's less than £1,000

 

[scarps]

Have you had a tax bill over £1,000 before? As you don't make the on account payments if it's less than £1,000

Yes Ive sorted it now, was reading it wrong.