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Payments on Account

Why do i have to pay them if my tax bill is less than £1k

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Hi everyone,

I work full time in Industry but also have some self employed income.  In 2016/17 the tax due from self employment was over £1k so I've had to make payments on account this year. 

Do I enter the payment on account on my self assessment form (if so where)?  Our are they taken into account in the background somewhere?

Also I've completed my 1718 self assessment form to a draft stage.  It is telling me still make a payment on account even though my tax bill has gone well below the £1k limit





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By gainsborough
06th Dec 2018 10:48

Hi Al. The payments on account are not entered on the SA form but the amounts paid are taken into account in the 2017/18 calculation.

Re the 2018/19 POAs being generated - are you sure you are looking at the correct 2017/18 tax figure when looking at the £1000 limit? It should be the tax liability minus tax paid at source but before any 2017/18 POAs are deducted.

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By Duggimon
06th Dec 2018 12:44

The obligation to make POA is not determined by just the tax bill on your self employed income but by your total tax liability.

If your total liability is over £1000 and less than 80% of it is taxed at source, POA are due. If this results in you paying more on account than you need to, you can claim to reduce them.

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By emanresu
07th Dec 2018 19:22

Surely if your 17/18 SA is still in "draft", the relevant "tax bill" is that for year 16/17 - which was at a PoA-triggering level.


for how you escape from PoA - criteria you don't, yet, seem to meet.

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