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Is 31 July POA still due

if return submitted before 31st July?

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My software (Sage PT) is telling me my client's balancing payment is due 31st Jan, is this correct?  Would HMRC expect the July POA still be paid if I submitted the TR today for instance?

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By Hometing
05th May 2022 16:24

If tax liability is lower than the POAs, pay the reduced amount rather than the previous amount.

If it's higher, the POA in July remains and the balancing payment due Jan.

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Replying to Hometing:
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By Tax Dragon
05th May 2022 16:34

I know nowt about Sage PT but I'd lay you good odds the OP hasn't looked very hard at what the computation is saying.

I'd tweak your first sentence to "If tax liability is lower than the POAs, pay the reduced amount in July rather than the previous amount" - I know it was in your head but it didn't make it onto the page.

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By DKB-Sheffield
05th May 2022 16:45

Also no experience of Sage Personal Tax. However, I am assuming the software may have automatically included 'payments of prior year POA1 and POA2' in the calculation of what tax is owed at 31/01/23?!

Check the computation in more detail! If POA2 is showing as 'paid', client should pay POA2 (July 22) and balancing payment (Jan 23). If not, refer to Hometing and TD.

Incidentally, the 2021/22 TR (alone) will not make reference to (or calculate) what is *owed* in respect of the 2021/22 POAs. That was handled in the 2020/21 TR.

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Replying to DKB-Sheffield:
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By Tax Dragon
05th May 2022 17:07

DKB-Sheffield wrote:

Incidentally, the 2021/22 TR (alone) will not make reference to (or calculate) what is *owed* in respect of the 2021/22 POAs. That was handled in the 2020/21 TR.

Actually that's a good point. If this is the first year it's on Sage PT... I withdraw my offer of good odds.

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By MCV71
05th May 2022 20:44

If the liability is lower, for some reason make the class 2 element not payable until the following Jan

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RLI
By lionofludesch
06th May 2022 07:27

There's not enough information to say.

Though I'd suggest that, if there's a balancing payment, the POAs will stand.

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By Southwestbeancounter
06th May 2022 14:23

Have you inserted the first payment on account paid in January 2022 into your calculation as, unless the 2021/22 software is different, you need to input this manually in Sage Taxation or else it won't know what has already been paid which could be what is affecting your figures?

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Replying to Southwestbeancounter:
By Paul D Utherone
06th May 2022 15:32

Possibly you may also need to show POA2 as payable in July for everything to flow through properly.

If 21-22 liability is > 20-21 then the max POA set by the 20-21 return will remain due in July.

If 21-22 liability is < 20-21 then POA's will be [21-22 liability - Class 2 NIC - any CGT]/2, there will be an overpayment on POA1 to reduce the amount actually payable in July, and Jan 23 balancing payment will be Class 2 NIC + any CGT due

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