I've already put this to my accountant by email but I seem to recall you have some ability to change your payment on account if you have good reason to expect your income to change since the previous year. Is this correct and how does it work if so?
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Varying SATR payments on account?
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Varying SATR payments on account?
Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishing -
Originally posted by d000hg View PostI've already put this to my accountant by email but I seem to recall you have some ability to change your payment on account if you have good reason to expect your income to change since the previous year. Is this correct and how does it work if so?
Should you get it wrong though and your income exceeds what you projected, any tax liability not covered by the reduced payments on account will attract interest from HMRC.
Your accountant can claim to reduce your POA's through your tax return or through the Government Gateway. -
Originally posted by Patrick@Intouch View PostYou can reduce your payments on account if you think that your income is likely to be lower in the 2019/20 tax year than it was in the 2018/19 tax year.
Should you get it wrong though and your income exceeds what you projected, any tax liability not covered by the reduced payments on account will attract interest from HMRC.
Originally posted by Patrick@Intouch View PostYour accountant can claim to reduce your POA's through your tax return or through the Government Gateway.Comment
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You can do it yourself by logging into your tax account.
As Patrick says, you need to make sure you don't reduce it too much or else you'll incur interest. My first accountant advised me to always reduce them to zero which I swiftly discovered was bad advice indeed. The interest wasn't onerous but it was annoying when I realised that it's not optional to pay in two instalments.Comment
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Originally posted by Paralytic View PostIs it also the case that if the actual income is less than the projection, we earn interest on the difference? I'm sure that happened to me a few years ago and will leave my artificially high if it means I'd earn more than I'd get via a savings accountComment
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Originally posted by Patrick@Intouch View PostYes, if you've paid more than you end up owing through payments on account then HMRC should apply interest and add that to any repayment.Comment
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Interest
Originally posted by Paralytic View PostAny idea what interest rate they use? Could be better than most savings account, even 1 year notice ones.
repayment interest rate - 0.5% from 29 September 2009Comment
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Originally posted by ladymuck View PostYou can do it yourself by logging into your tax account.Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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