Bigman2023

Hello, many thanks for your replies, you are confirming what I thought having search the issue. I wanted clarification because, unknown to you, I was charged 'on account' in the past with similar income sources and it wasn't until I challenged the online decision on the phone I was told I should not have been charged 'on account', hence the need for clarification.

I would appreciate your advice and guidance on the 2 questions (A & B) below. I have set out the facts in points 1 to 9, but can of course provide more information if needed. 1. I am UK resident for tax purposes. 2. I have never been self employed. 3. I am a pensioner receiving state pension. 4. I also receive an occupational pension from the Isle of Man Government. 5. My tax code is only applied to very small UK private pension (less than £200 per year). 6. My tax code cannot be applied to my Isle of Man pension nor to my state pension, therefore 80% of tax due cannot be collected this way (even though tax due is less than £3000). 7. My last year’s (2021-22) UK self assessment tax due was circa £950. 8. This year’s (2022-23) initial UK self assessment calculation has tax due circa £1050. 9. The calculation also states I have to pay ‘on account’ 50% more along with £1050 by 31 January 2024 and a further 50% of the £1050 by 31 July 2024. Question A. Is this demand for ‘on account’ tax payment correct for a non-employed, non self-employed retired pensioner, not least in a cost-of-living crisis? Question B. If the calculation is correct, will this ‘on account’ tax demand continue year on year, bearing in mind the UK tax system means my state pension is not taxed at source and the 1955 UK/Isle of Man double-taxation treaty changed in 2013 (effective 2014) which are in place, are not my fault? Yours sincerely