Reduce payments on account in Personal Tax
Payments on account (POA) are based on the previous tax year's liability, so when reducing them in Personal, Business and Trust Tax, you need to be in the tax year to which the POAs relate.
- To change the tax year, selectEditthenChange Assessment Year.
- Select the relevant tax year, thenOK.noteIf you're completing the current year's tax return and you wish to reduce the following year's POA because that year's income will be lower, then you will need to be in the following tax year to enter the reduction.If you're completing the current year's tax return and a claim to reduce the current year's POA has previously been made but not recorded on Digita, then you will need to be in the current tax year to enter the reduction.
- SelectToolsthenPaymentsfrom the main menu.
- Select the first instalment thenAdd Adjustment.
- ForType, selectAdjust Current Instalment.
- Select theReasonfor the deduction from the dropdown list, or enter your own reason.
- Enter theAmountto reduce the payment by (not the amount you wish to reduce it to), then selectOK.
- Mark theDo not recalculate interim instalmentscheckbox.
- Repeat steps 4 to 7 above for the second instalment POA.noteWhen you go back to the previous year, the tax return pages SA110 will be revised to display a tick in box 9, the revised POA in box 10, and the reason for the reduced payment in box 16. Your client computation will also be revised accordingly.If you've submitted the return and you are completing form SA303, this will also be populated with the appropriate details. To produce Form SA303, go toFormsand selectCreatenext to form SA303. You will need to print and post form SA303 becuase there's no option to file it online.