NEWS

Second Payment on Account - Reminder

The deadline for self employed workers to pay the second half of self assessment is 31st July. 

For those new to self assessment and this is your first year filing a tax return, the second payment on account can catch people out.  Here is how it works:

Say your tax bill on your earnings between 6^th April 2015 and 5^th April 2016 is £5000.  You will have made that payment by the end of January 2017 but will also need to pay an extra £2,500 at the same time and then again by the 31^st July.  Then, when you file your return the following financial year (ie January 2018) you will already have paid £5,000 towards it.  If you’ve overpaid you will be given a rebate and if you’ve underpaid then the rest is owed by 31^st January 2018 and your payment on account will increase.

Please let us know if you would like help with your tax planning.

14/06/2017