Payments on Accounts

Question 1

VAT

Answer 1

• 1st POA - End of month 2 (1/24 of previous years total VAT liability)
• 2md POA - End of month 3 (1/24 of previous years total VAT liability)
• Balancing payment and (VAT return) - End of following month after end of quarter

liability > £2.3 million pa

In year end quarter

Question 2

VAT - Annual Accounting Scheme

Answer 2

• Nine monthly interim payments from end of month 4 to end of month 12 ( 9/10 x estimate VAT liability)
• Balancing payment (and VAT Return) - within 2 months after y/e

OR

• Three quarterly payments of 25% end of months 4,7,10
• Expected taxable supplies <£1.35million

Flat Rate Scheme annual taxable supplies <£750k (excl. VAT)

Question 3

Income Tax

Answer 3

• 50% of previous years tax liability + Class 4 NICS paid under self assessment
• 1st POA - 31 Jan 25
• 2nd POA - 31 July 25
• Balance - 31 Jan 26 (any capital gains tax due and balance of income tax and class 4s

If last years tax paid under SA is less than 20% of total liability or 1000 then no POA required

Question 4

Interest on late tax

Answer 4

• POA
• Balancing payments
• Penalties
• Amendments
• Discovery Assessment

Dont include due date and date of payment

Question 5

Repayment Interest

Answer 5

• POA
• Balancing payments
• Penalties

Original due date to day before repayment