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Posted Sat, 15 Jan 2022 14:27:19 GMT by richy1995
My tax due in my self -assessment has gone down this year. The payments on account I have already paid were based on last year's higher assessment. For my next payment due by January 31, can I deduct the over payment and pay a lower amount (50% of this year's calculation minus the total amount overpaid). Is this what the field "Decrease in tax due because of adjustments to an earlier year: (optional)" is for? - although the help for this field only talks about making a loss. I didn't make a loss, just not as much as last year. When my income in previous years has gone up I have simply paid the extra in my January payment, so I presume I can just do the same for lower income, and pay less in my January payment. They have all the information to calculate this for me so I'm not sure why their calculations can't show me the reduced January payment automatically.
Posted Mon, 17 Jan 2022 15:18:12 GMT by HMRC Admin 17

If you have already paid more than the amount due for 20/21 you can deduct that from any future amounts due, the box for decrease
in tax due should not be used in this case.

The tax calculation itself does not take into account how much you have already paid.

Thank you.

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