UK Payment on account

[johndfu987av]

Hi All, It's my second year in business and I'm doing my tax return 2017/2018. My accountant did it all last year and I'm attempting to submit it myself this year.

I've noticed the tax is about £1000 higher than predicted last year. Have a few quick questions below for the payment on account.

Can I submit my return and not worry about the payment on account as these are calculated automatically by the online system.

Will I be charged any interest as my tax is more this year.

If my tax was lower this year how do I request a refund

Hope you can help out

Thanks in advance

 

[Fidget]

For 2017/18 you need to pay your tax bill on or before 31 Jan 2019. The amount you need to pay will be the full tax bill for 2017/18 minus your payment on account.

You won't be charged interest so long as you pay the balance on or before 31 Jan 2019.

If your tax turned out to be lower for 2017/18 than your payment on account, then HMRC will issue a refund without you having to ask for it, although you could ring them to try and speed it up rather than wait until they get round to it.

Remember as well that you'll be due to pay 50% of the full value of your 2017/18 tax bill by 31 Jan 2019 for your first payment on account for the 2018/19 tax year.

 

[johndfu987av]

hi Fidget, thanks for your reply, its really helpful for me and clears up the payment on account question really well,
thanks and regards