ACCA ATX ^UK Syllabus A6. Value Added Tax - Timings for Payments of Tax - Notes ^{2 / 4}

This is the date for income tax, NIC class 4 and CGT

These are made if less than 80% of last years tax liability was deducted at source (unless less than £1,000)

Therefore employees don't need to make POAs as more than 80% of their tax liability is deducted at source

They only apply to income tax and class 4 NIC - NOT FOR CGT

DATES for POAs

1. 1st = 31st January

2. 2nd = 31st July

3. Balance on 31st January next year (normal due date)

CALCULATION of POAs

Based on last years "relevant amount" (half payable on each POA)

Relevant amount = tax due - amount deducted at source

Example

Jack’s tax bill was £10,200 - of which 2,500 was collected using PAYE

What is the amount of the POA’s?

Answer

POA 1 £3,850 (10,200 - 2,500 = 7,700/2)
POA 2 £3,850