AnonymousUser
Blogger
Share this content
0
626

SA Payments on account

SA Payments on account

What happens where an underpayment effectively means your payments on acount should have been higher ie: for underpayment interest purposes?

Eg :
Jan 01 - 1st on acct £1000
July 01 - 2nd on acct £1000

Say, before July 01 you know your final tax bill will be £3000, would you HAVE to pay the £2k with your Jul 01 payment OR pay bal of £1k in Jan02, thereby obtaining cashflow advantage. Any interest chargeable on shortfall ?
RT

Replies

Please login or register to join the discussion.

avatar
12th Jul 2001 09:49

No interest!
On the assumption that the 2 payments on account have not already been reduced by an appropriate claim, the balance would be payable on 31 January 02, with no interest due up to that date. The £1,000 is not an underpayment. It is worth noting, however, that should the eventual liability prove to be less than £2,000 then, again assuming no claim has been made to reduce the interim payments, repayment supplement would be credited to date of repayment.

Hope this helps

Thanks (0)
Share this content