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Posted Mon, 02 Jan 2023 15:00:41 GMT by DJ M
Hello, nb. this is my first time filling in a self assessment. I have just finished my online self-assessment for my side job for the 2021/22 tax year - I need to pay £1,600 tax on this by 31/01/2023. However the View Your Calculation page then includes the line "1st payment on account for 2022-23 due 31 January 2023 - £690" followed by "Total due by 31 January 2023 - £2,290", with a note saying "2nd payment of £690.70 due 31 July 2023." I'm a bit confused - I assume this extra £690 is an early estimate for part of the 2022/23 tax year, based on my earnings from 2021/22? I thought that each tax year is kept separate? The figures provided for 2021/22 are based on precise actual income received. I don't understand why I'll need to pay tax upfront for 2022/23 and then spend time recalculating it next year for over/underpayment..?? Surely it would just make more sense for me to pay my £1,600 now, then provide a new and accurate return for 2022/23 in Jan 2024, and pay the actual tax owed then? Please can you clarify? sincerely, DM
Posted Thu, 05 Jan 2023 13:49:33 GMT by HMRC Admin 32

You are being asked to pay Payments on Account which are mandatory if you meet the conditons.

Understand your Self Assessment tax bill

Thank you.

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