-
Where does £2700 come from?
And 'balancing payment' of £1200?The illustration assumes that your bill was 1800 for the previous year, and this sets your payments on account of 2×900 for the year in question. You've paid those, but everything went better than expected and your actual liability is 3000
3000-1800=1200 to pay to complete your total
1500 is your first payment on account for the next year because its half the 3000 you're expected to owe
1200+1500=2700 -
can I just pay the whole thing at once in Jan 23 (for 21/22) ?
If you haven't made any payments on account (e.g. you paid little or no tax for 20/21, so they didn't request payments on account), then you will pay the whole of 21/22 tax liability in Jan 23 and your first payment on account for 22/23, assuming your total liability is big enough to make them ask for payments on account. As far as I can tell, the threshold is £1000; if your total liability is less than that, they don't bother to ask for payments on account, they just take it all at once the following January. This does mean that if you go over their administrative threshold, you end up having to find 150% of that year's tax all at once, so bear that in mind, e.g. you've made no payments on account for 21/22 but your total liability turns out to be £3000, then they'll want £4500 in Jan 23
You are reading a single comment by @amey and its replies.
Click here to read the full conversation.
gbj_tester
@amey
I cant get my head around this.
If by that example, you owe £3000 of tax the 2 payments would surely be of £1500 each.
Where does £2700 come from?
And 'balancing payment' of £1200?
The next 2 payments I understand; £1500 each.
To simplify, can I just pay the whole thing at once in Jan 23 (for 21/22) ?
1 Attachment