WHO Poll
Q: 2021/22 What competition should we prioritise this season?
a. The league is our bread & butter, so this year let's have a club sandwich
b. We're owed an FA Cup after Gerrard nicked our last one in 06, our name's on it in 22
c. A bye to the League Cup 3rd round gives us a good start, let's make it count
d. The Europa is our best ticket to the Champions League, this is the one
e. What's wrong with you, let's do the lot, has the quadruple ever been done

camel-with-3-humps 7:09 Thu Jan 14
Tax question
Question ..

If you earn an extra income - for example rent properties - and it reaches a certain threshold of your salaried income, then you pay two years tax up front.

Then you keep on paying the tax year ahead of everyone else, eg 2020/21.

Has anyone experienced or come across this? What's the logic from the HMRC point of view? How does it benefit the taxpayer?

Replies - Newest Posts First (Show In Chronological Order)

WorldCupWilly 2:19 Fri Jan 15
Re: Tax question
And this tax year you would have had a bonus in that the payment on account that was due on 31st July could be deferred until 31st January.

Jasnik 8:53 Thu Jan 14
Re: Tax question
Westside 7:43 Thu Jan 14

nice once again WHO answers your question.

camel-with-3-humps 8:00 Thu Jan 14
Re: Tax question
Thanks lads - got it.

It does make sense via your explanation.

Quite a surprise when you suddenly realise that is the case.

Westside 7:43 Thu Jan 14
Re: Tax question
Your not paying up front, you're paying on account, for the current tax year.

You are receiving your rental income gross. Not unreasonably, HMRC don't want to wait to well after the end of the tax year, to get their dosh. Those on wages are paying their tax as they go, in the current tax year.

Your final payment, is adjusted, to reflect your actual extra income. the extra income for one year, is used to base the payment on account, for the next year.

Your not paying two years up front with extra income. You will be in arrears for the 1st year and paying a payment on account, for the second year, from when you first declared the extra income.

Only advantage to the taxpayer, is if you make the on account payment when due, you can't piss the income up the wall and be broke and have no money to pay the tax, when it falls due. Of course, this can still happen, with the money needed for the second (balancing payment).

BRANDED 7:36 Thu Jan 14
Re: Tax question
Your non waged income can vary. You pay some on account. It plays out in the end as you might even get a rebate.

Too Much Too Young 7:28 Thu Jan 14
Re: Tax question
Although its never applied to me, i'm pretty sure if you're self employed you also have to pay a year in advance.

Raymond Reddington 7:14 Thu Jan 14
Re: Tax question
If you take payment in form of magic beans, you don’t have to pay any tax

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