Reduce payments on account due to moving abroad?

I moved to the USA in June 2016 and have paid tax there since. Can I reduce my payments on account?

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I moved to the USA for work in June 2016 and have been living and paying income tax there since. Am I correct in thinking that I can request to reduce my payments on account for 2016-17 to nil, since I have not earnt any taxable income in the UK?

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paddle steamer
By DJKL
20th Jan 2017 13:35

Why did you previously have payments to account, what was the source income that gave rise to the need for them and does it continue, if not when did it cease ?

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By ifoundaway
20th Jan 2017 13:55

I was self employed while living in the UK thus paying self assessment tax. I moved in June 2016 and have earnt no income in the UK since, so my 16/17 return will fall below the personal allowance for the tax year.

I'm currently completing my return for 2015/16 at the moment and will have payments on account due for the next tax year upon submitting it (two installments of 50% of the 15/16 tax due), so I just want to check I understand POA before requesting a reduction.

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Replying to ifoundaway:
paddle steamer
By DJKL
20th Jan 2017 14:06

Presume you have prepared accounts covering from accounts ending within 2015/2016 and cessation of trade?

Was cessation of trade May/June 2016 or earlier, was it perhaps before 5/4/16 etc?

What was your normal year end re accounts?

Just prompting in case accounts do not marry with the tax year and you had not appreciated some of the interesting facets/ manifestations of basis periods/overlaps etc.

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JCACE
By jcace
20th Jan 2017 13:59

If you believe that your 2016/17 tax liability will be less than your payments on account, you can reduce them to the amount that you believe they should be, even if that's zero. If it later transpires that you have lowered them too much , you will be charged interest on the shortfall.

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By David Treitel
20th Jan 2017 18:43

What kind of visa do you have in the US? Are you married? If so, are you electing to file a joint US income tax return for the full 2016 tax year?

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