cheers all but does that mean i always have to pay on account or does it even out.
simbo
As far as I am aware it will work this way until the IR change there rules.
Don't confuse your personal tax with vat, they are not linked in anyway even if you are vat registered...totally separate entities.
The request for payment you have just had will relate to £2000.00 balance of year 2006/2007, so up until last April 5th ish will be paid for. Check out the £2700 is that ALL payable in January or is it split January and July. If it is all for January this is your first payment against 2007/2008 figures (from April 6th ish) and then you will be required to make a second payment in July 2008 against 2007/2008 figures.
April 2006 to April 2007 - payable January 2008
On Account payments for April 2007 to April 2008 - payable January and July 2008
April 2007 to April 2008 - payable January 2009
and so on.
Hope you can follow this, easy to follow in my head not so easy to put down in words.
Just follow one rule....never p*** off the tax man