Self Assessment / Payment on Account

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Hello,

I'm a sole trader and according to my HMRC "Current Position" on the 31st January 2024, I will pay £674.52 for my first payment for the 23/24 tax year and a further payment of £674.52 on the 31st January. This means total payment of £1349.04 for any tax due from the 2023/2024 tax year.

I've estimated that my tax for that year will be £1722.80 and here is my question:

The £1722.80 that is due on the 31st January 2025, do I deduct the £1349.04 already paid meaning that I actually pay £373.76.

And in terms of the payment on account, a further payment of £861.40 with a further £861.40 on July 31st 2025?

It would be good if someone could confirm this is correct.

Thank you.

Replies (3)

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By Tom+Cross
13th Nov 2023 14:24

The second payment on account, for 2023/24, will be due for payment on, or before, 31st July 2024, not January, as you've suggested.

Apart from that yes, I think you've got it!

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Replying to Tom+Cross:
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By JB101
13th Nov 2023 14:57

... ignoring Class 2 NI/CGT etc.

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By rmillaree
13th Nov 2023 15:38

what you have

"The £1722.80 that is due on the 31st January 2025, do I deduct the £1349.04 already paid meaning that I actually pay £373.76."

as long as ye 5/4/2023 return has been fully processed correctly i would expect tat to be correcty - with caveat as Tom+Crpss has pointed out that second payment on account is due July 24 not january 24. Note figures are always subject to change when returns are processed.

"And in terms of the payment on account, a further payment of £861.40 with a further £861.40 on July 31st 2025?"
As JB101 mentioned - class2NI and some other items will be excluded before your payments on account are calculated. If you plan for the worst now though and actual payments turns out to be less thats a bonus - it all catches up the folowing jhanaury though.
There is also always ability to reduce payments on acount if you expect lower tax bill for that year - that can be dangerous but if you are on the ball and expect "payment on account tax year" final bill will be down you can reduce payments on account. Note if you do that original amounts can be put back in or partly back in if your reduce too much in error

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