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Posted Tue, 11 Jan 2022 20:14:47 GMT by wilsonmj
If in the tax year 2020/21 your tax bill falls unusually below £1,000 owing to poor trading due to Covid and some one-off AIA, is there a requirement still to make payments on account if you believe for 2021/22 things will be more back to normal and your tax bill will be in excess of £1,000. Or do you not make any payments on account and pay the 2021/22 tax when submitting the self assessment return. If no payments on account are made in these circumstances would the 2021/22 tax attract interest penalties?
Posted Thu, 13 Jan 2022 14:02:37 GMT by HMRC Admin 24

If no Payments on Account are generated there would only be a balancing payment and all tax would be due 31/01/2023.

You can make payments before this if you would prefer to do so but there wouldn't be a charge on the account.

Thank you.

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