Barrysh Posted August 17, 2018 Report Share Posted August 17, 2018 Hi, because I have rental income I have to complete a self assessment each year. This is the 4th year I have done it without any concerns. This time when I get to the end and it tell me how much I owe for the year (1500) it also says I should pay 750 first payment on account of 2018/19. Have I ticked a wrong box somewhere or has there been a change recently. I did ask HMRC but never got a reply. Thanks Link to comment Share on other sites More sharing options...
Richlist Posted August 17, 2018 Report Share Posted August 17, 2018 Its always been like this, there is no recent change that I'm aware of. I expect it's because you now earn over a certain threshold. Normally you have to make two tax payments, half is due by 31st January & the other half by 31st July. They estimate next years tax bill using this years profits as the basis and add that figure to this years bill...that's called payment on account.......so that when next year's tax bill is due you have already paid something towards it. In your case you appear to have £1500 profit this year. They estimate you will have £1500 profit next year. Therefore you will need to pay £750 + £750 in Jan 2019 and £750 + £750 in July 2019 Link to comment Share on other sites More sharing options...
Barrysh Posted August 19, 2018 Author Report Share Posted August 19, 2018 Hi, thanks for that. Used to only have one rental property but bought a second last year. Must be a threshold. Cheers Link to comment Share on other sites More sharing options...
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