HMRC has let me know that I'm paying tax on account for next year. All my income is taxed at source at the moment (UK salary and UK private pension). Does that mean that my tax code, when given to my employer and pension provider, will essentially tell them to pay gross, with no tax deducted (because I have already paid it)?
Arthur Weller replies:
Firstly, the fact that you are paying payments on account (which is in effect paying next year's tax in advance) does not mean you can be paid your salary and pension gross. Tax will still be deductible at source. But secondly, if all your income is taxed at source, then you do not need to pay payments on account. See HMRC’s Self Assessment: the legal framework Manual at SALF303. You should apply to HMRC using form SA303.