What 31st July deadline?
Don’t worry. Unless you file a self-assessment income tax return, are expecting a tax bill of more than £1,000 and need to make your payment on account on 31 July. The rest of you can relax.
The thing is, your July payment on account is based on your PREVIOUS YEAR’S tax bill, HMRC working on the basis that it will probably be much the same. What if you are keenly aware that your income is going to be lower this year.
So get your books and figures into as soon as you can, and we can get your tax return sorted before the critical 31 July date.
You win either way. If your bill is lower, you can end up having to pay less on 31st July. If it is higher, you still pay the same amount in July, with the final balance not due until 31st January 2017.
REDUCE THE AMOUNT
If for some reason you cannot get your books into us in time, but you are still aware that your income will be lower, give us a shout and we can apply to reduce your payments on account.
Also be aware that HMRC will charge interest on late payments. If you are having a bit of a slow day you can tinker about with this little calculator to see what a hypothetical interest bill might be. (Bear in mind this is an estimate) https://www.gov.uk/estimate-self-assessment-penalties Naturally we would recommend you pay on time.
As ever, if self-assessment and payments on account are causing you grief, give us a call and let us deal with it for you. That’s what we are here for!
Wishing you an interesting week.