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Posted Fri, 17 Jan 2025 13:37:26 GMT by HMRCChloe
Hi everyone, I've just had a couple of years when I was poorly and didn't earn enough to pay taxes. I'm hoping to start earning more this year, but what does it mean in terms of payments on account? I've just completed my 2023/24 return and understandably my POA have been calculated as £0. If I start earning a full-time income, won't that make my bill huge next year though? Thanks in advance for your replies.
Posted Thu, 06 Feb 2025 11:11:04 GMT by HMRC Admin 32 Response
Hi,
When you file your 2024 to 2025 tax return, if the tax owed is over £1000, POAs will automatically be calculated for 2025 to 2026. These POAs are a prediction of the tax that you will owe in 2025 to 2026, and will usually equal the tax you owed for 2024 to 2025.
The first POA for 2025 to 2026, 6 months of predicted 2025 to 2026 tax, will be due on the 31st of January 2026 - 10 months into the 2025 to 2026 tax year. If it this point you know that the tax that you owe for 2025 to 2026 will be lower than the POAs calculated, you can reduce your POAs.
For more information, go to: 
Understand your Self Assessment tax bill
Thank you.

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