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Sam
Sam, Accountant
Category: Tax
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Self assessment, do I pay tax in this tax year on the tax I

Resolved Question:

Self assessment, do I pay tax in this tax year on the tax I have paid for the previous year
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the Uk tax experts.
It could be both
If your income less expenses for last year (so eared from 06/04/2014 to 05/04/2015) generates a tax bill of less than £1000 then you just pay that by 31/01/2016 - and the next tax position will be looked at when you file your tax return for the period 06/04/2015 to 05/04/2016 (so after 06/04/2016)
But if your tax bill for 2014/2015 was MORE than £1000 then you have to pay this plus payment on account .
Payments on account ask for half of the last tax years bill (for 2014/2015) on 31/01/2015 and again 31/01/2016 - then by the time you next tax bill comes in (after you have completed the 2015/2016 tax return) then you have some tax already paid "on account" to cover the next bill
If by the next bill its more than the amount on account you paid on 31/01/2015 and 31/07/2015 - then you pay the balance and also new payments on account (31/01/2016 and 31/07/2016 - each of them half of the latest bill (due from 2015/2016)
If its less than you get a tax refund - an then are not expected to make NO payments on account
Let me know if you want to me expand by providing a full example. And I can use your figures if it would be easier.
Thanks
Sam
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