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Quite why HMRC are unable to take into account payments on account remains an enduring mystery
They do take them into account eventually, it's just that the instant tax calculation at the end of your return filing process doesn't. Presumably there's some verification procedure which takes longer than anybody is prepared to wait while they're sat at the computer.
If you get organised and file nice and early, they send you a properly calculated statement a couple of months before the next payment is due.
gbj_tester-
They do take them into account eventually, it's just that the instant tax calculation at the end of your return filing process doesn't. Presumably there's some verification procedure which takes longer than anybody is prepared to wait while they're sat at the computer.
I still can't work out why HMRC, who know they've received the payments on account, can't take them into account when doing the instant tax calculation. Well, other than the obvious reason of institutional incompetence.
If you get organised and file nice and early, they send you a properly calculated statement a couple of months before the next payment is due.
Yeah, that's really not ever going to happen!
Brommers
Yep, years ago. Scrimped and saved to pay the £93k the system said was outstanding, and then ended up paying no tax the next year. Quite why HMRC are unable to take into account payments on account remains an enduring mystery.