Personal Tax: Payment on Account, How to reduce or delete a payment?

personal-tax-payment-on-account-how-to-reduce-a-payment

Personal Tax: Payment on Account, How to reduce or delete a payment?

24th June 2022

IRIS Personal Tax: Payment on Account, How to reduce or delete a payment?

Reduce payment: You have one or both payments on account that are showing a value and you want to show a lower £ value instead. But when you change the value, it keeps reverting back to the original value?

1^st and 2^nd payments are normally auto calculated based on the balancing payments due. This is why the figures keep reverting back when you are trying to change them. Go to Administration- Claim to reduce payments- Click on a reason or enter your own to advise why the amounts are being reduced- enter the amount- click ok. The tax comp should show the new amount.

Delete payment: Administration – client account – find and select the relevant payment and delete. If you cannot see the entry – on the top left tick ‘Show full amounts and fully matched’.

But if that doesn’t delete it, then click ‘Match‘ – a new screen will appear, then select the relevant payment (so turns blue) and click ‘Match’ again – now delete – save (this is because the payment was already matched and this cant be deleted unless you first un-match it).

Remove a Refund: Administration – client account – find and select the relevant value which makes up the refund and delete. If you cannot see the entry – on the top left tick ‘Show full amounts and fully matched’.

But if that doesn’t delete it, then click ‘Match‘ – a new screen will appear, then select the relevant payment and click ‘Match’ again – now delete – save (this is because the value was already matched and this cant be deleted unless you first un-match it).

How to offset a refund against a payment on account due: This is a HMRC restriction in the software you cannot offset the refund against your payments on account also there is no boxes on the return to show this therefore once the return is sent to HMRC you can ask them to offset the refund against payments on account (under Reliefs, additional info and SA100)

I have deleted the 2nd payment it returns on the Tax comp? I have removed the second payment on account entry however, when I go back to the client account post running tax comp – the second POA shows again. You will need to make a credit adjustment on the second payment on account. In the client account click on insert and enter a – credit adjustment with the amount you want to reduce the payment on account by with date and the year it is and then match that credit adjustment to the payment on account. It will show on the tax computation that the second payment on account has been reduced