First Payment on Account is more than my actual tax bill for the year!

Hi, I'm late to paying my 1st payment on account ( 31/1/25 ). My circumstances have changed in 24/25 versus 23/24. I had a tax bill of 22k in 23/25 so I was due to pay 11k in Jan and 11k in July. I've already submitted my self assessment for 24/25 and I owe 5.5k for the year. Obviously if I now paid the overdue 11k I'm going to end up in credit massively. I've submitted a request to reduce the poa down to 2.5k but will this affect just the payment in July and if I pay the 5.5k outright what should I do about the interest charge I've built up?

Not HMRC...The payment on account in Jan 25 is for 24/25, if you've submitted 24/25 and owe a total of £5500 for the year, then the payments on account in Jan 25 and Jul 25 would automatically fall to £2750 each...and interest will be charged on the £2750 from January 25, plus late payment penalties. You shouldnt reduce payments on account for 24/25 lower than actually due if you have now submitted that year, they should be the amount of the tax due and will be autocalculated backwards on the basis of that return. If you check your account, the payments will auto adjust for the actual figures. You should pay what you think is due (plus the interest and late payment penalties)

Hi Steve Roberts,
When you submit your 24/25 return, if the overall amount calculated as due is LESS than the total of the two 24/25 Payments on Account (POA) previously calculated, these POAs should then be automatically reduced.
They will each be 50% of the 24/25 overall amount calculated as due (and no balancing payment will be due).
If you do not see this reduction on your Personal Tax Account, contact us by webchat or phone here:
Self Assessment: general enquiries
Thank you.