Just completed my first 2014/ 2015 SA tax Return
Client is a PAYE tax payer earning about £17,000. She owes £1500 which will be coded out in 2016 / 2017 but software is showing payments on account as being due. I may be having a dumb moment but I'm sure in previous years coding out the balancing payment also eliminated POA.
Are the POA's correct ? phoned HMRC and chap said they were but I don't have a lot of faith in the Agents helpline when asking this sort of question
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Tax Return
Why does the taxpayer have to complete a tax return and are you sure the original return is correct. Something doesn't sound right with the figures you quote in the original post.
The reason payments on account are showing
Is that it isn't possible to collect a £1,500 tax liability through a tax code when the PAYE earnings are only £17k.
This breaches one of HMRC's criteria for collection by code, i.e. that the underpayment is more than the liability to be collected via PAYE for the year.
Your client has no option but to pay the tax by 31st January 2016 in full.
Didn't you read my reply?
The coding out will be rejected and the payments on account reinstated.