What are Payments on Account? | UK Tax

[@JuniperLynx]

Hey guys, thanks for watching our video explaining Payments on Account! Join our complete accountancy service from £139 a month: www.juniperlynx.com/ If you need help leave a comment.

[@Adam-ui3ot]

Still wonderful videos, thank you.

[@lawrencer25]

Fabulous video

[@JuniperLynx]

Thanks 🤗

[@Hoshysorani]

Hiyah thanks for your videos they have been helping me alot , i really appreciated your time and ur courage, can you please make a video on how to report earnings of director and the staff to HMRC on monthly basis on Limited compnay. I have Limited company and i have registered it for PAYE (which is thanks to you and your previous videos) and i would like to report my earnings and the staff to HMRC on monthly basis and generate wage/payslips to them Thank you

[@gardonehsan3833]

If my tax bill for the year is £3000 and each year on January 31 I pay 3000+ 1500 and in July 1500 that means each year I pay £6000 this will come out of my account for 10 years ( if I get the same income each year) the to Total will be £60000 while I am supposed to pay 30000 based on my income , 3000 per year for 10 years. I just can’t get my head around this puzzle.😮

[@JuniperLynx]

Thanks for your comment! If your tax bill is exactly £3,000 every year, then only the first year would be £3,000 + £1,500 with a second payment of £1,500 (Total £6,000). Going forward the 'balancing charge' would be £0.00 as you have already paid £3,000 towards that year and your liability hasn't increased. Then there would only be the two payments on account of £1,500 each (£3,000). I hope that makes sense!

[@MS-zc6hj]

Great Video, how this payment on account carries on the following year? will the surplus amount be adjusted / credited? many thanks.

[@Adam-ui3ot]

You either get the difference paid back for knocked off the next time.

[@JuniperLynx]

The payments on account towards the following year will be adjusted accordingly once the next self-assessment is filed. Any overpayment will be credited to you.

[@MS-zc6hj]

@@Adam-ui3ot many thanks

[@MS-zc6hj]

@@JuniperLynx many thanks

[@JuniperLynx]

@@MS-zc6hj no problem! Just to clarify, if you had a lower liability next year but were still required to make further payments on account, then HMRC would use your existing overpayment towards those first. A repayment would only be issued if you had no further liabilities (including future payments on account).

[@lawrencer25]

Where have you been hiding 🙊🙈🙉👻