The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Income tax is collected in a number of ways, including:
Most UK taxpayers have all their income tax collected at source via their employers. Balancing payments and payments on account are dealt with via the Self Assessment system. Any taxpayer who believes he has a balancing payment to make in respect of a tax year must notify HMRC of his chargeability by 5 October following the end of the tax year. See the Notification of chargeability to income tax and capital gains tax guidance note.
Payments on account are interim payments of tax which apply to those Self Assessment taxpayers who have large amounts of tax payable at the end of the tax year because the tax collected at source does not cover the whole liability. This could be because the taxpayer has income which does not have tax collected at source (eg UK property income or bank interest). Alternatively, it could be because the amount collected at source does not cover the tax due on the income (eg a higher rate taxpayer in receipt of pension income that has only had basic rate tax deducted at source due to a mistake in the PAYE tax code or a higher rate taxpayer in receipt of patent royalties).
This guidance note discusses when payments on
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login