"Estimated Income tax" payments for 2011/12 - WTH !!!

[sbakoola]

I just received my personal tax 2010/11 breakdown from my accountant and I noticed that on top of the usual tax I pay on dividend and income tax there were two additional amounts the first to be paid before Jan 31 and the 2nd before July 31, both amounts were the same around £2500.

When I quizzed these two amounts, I was informed that these both were 'estimated income tax bills for the next future period 2011/12, rather like 'estimated gas bills' - apparently its calculated by dividing your actual tax owed for 2010/11, divided by 2 and then paid in two instalments over the course of a year.

I don't know about you but I thought HMRC and tax payments were meant to be more precise than this, I know I'll get the tax back if I have overpaid in the future but Gordon Bennet this is no way to formally ask for money not owed - this should not be happening !!

I guess it's a ploy to get money upfront by HMRC just in case you decide to run off at the end of the year and not pay your personal income tax but what about people who just don't have that money that is not owed in the first place ???

its just so wierd.

[northernladuk]

It's there to avoid morons ******* up and not having enough money to pay their tax when it is due...

Shame we don't have something similar to check which area of the forums people are posting their pointless whinging posts.

[doodab]

I just received my personal tax 2010/11 breakdown from my accountant and I noticed that on top of the usual tax I pay on dividend and income tax there were two additional amounts the first to be paid before Jan 31 and the 2nd before July 31, both amounts were the same around £2500.

When I quizzed these two amounts, I was informed that these both were 'estimated income tax bills for the next future period 2011/12, rather like 'estimated gas bills' - apparently its calculated by dividing your actual tax owed for 2010/11, divided by 2 and then paid in two instalments over the course of a year.

I don't know about you but I thought HMRC and tax payments were meant to be more precise than this, I know I'll get the tax back if I have overpaid in the future but Gordon Bennet this is no way to formally ask for money not owed.

I guess it's a ploy to get money upfront by HMRC just in case you decide to run off at the end of the year and not pay but what about people who just don't have that money that is not owed in the first place ???

its just so wierd.

Situation normal. It sounds like a PITA but it's actually quite handy for tax planning. IIRC you can apply to have them revised if you expect to earn much more or less than last year.

The Germans do much the same thing except they bill you quarterly.

[MarillionFan]

It's there to avoid morons ******* up and not having enough money to pay their tax when it is due...

Shame we don't have something similar to check which area of the forums people are posting their pointless whinging posts.

NorthernLadyUk not giving out again hey NL?

[cailin maith]

I just received my personal tax 2010/11 breakdown from my accountant and I noticed that on top of the usual tax I pay on dividend and income tax there were two additional amounts the first to be paid before Jan 31 and the 2nd before July 31, both amounts were the same around £2500.

When I quizzed these two amounts, I was informed that these both were 'estimated income tax bills for the next future period 2011/12, rather like 'estimated gas bills' - apparently its calculated by dividing your actual tax owed for 2010/11, divided by 2 and then paid in two instalments over the course of a year.

I don't know about you but I thought HMRC and tax payments were meant to be more precise than this, I know I'll get the tax back if I have overpaid in the future but Gordon Bennet this is no way to formally ask for money not owed - this should not be happening !!

I guess it's a ploy to get money upfront by HMRC just in case you decide to run off at the end of the year and not pay your personal income tax but what about people who just don't have that money that is not owed in the first place ???

its just so wierd.

Erm.... the payments have been around since Self Assessment was introduced.

Whats more wierd is that you have only just found out about them

[PAH]

I assume this 'pay your estimated tax up front as we'd prefer it in our account than yours' is optional?

I pay my tax when it's due not up front. They can have it over my cold dead ltd company.

[TheFaQQer]

My accountant ****ed up this year.

I have to pay £10.18 in tax - WTF?!?!?!

Good news is that they haven't asked me to pay £5 twice next year to cover this amount.

[Mich the Tester]

If you want a larf, pay them £5k in one lump.

They then will have to pay you back £2.5k coz it's not due yet.

Do they pay back overpaid tax with interest?

[PAH]

If you want a larf, pay them £5k in one lump.

They then will have to pay you back £2.5k coz it's not due yet.

That was worth doing when they paid interest on overpayments.

They stopped doing that a few years ago IIRC, though still charge interest on underpayments.

I cottoned onto that tactic when my dad once bought something from Currys on credit at their usual extortionate interest rate and overpayed when settling it. They were paying him the same interest rate back on his overpayment and kept ringing him up to try to sort it out.

[northernladyuk]

NorthernLadyUk not giving out again hey NL?

It's the other way round, dearie. Since the contracts dried up, he finds himself humbled in the conjugal act. Now that I have to go out evenings to earn a crust or two, he won't even look at me, but just spends his evening offering tax advice on the Internet.