The tax office is very good at highlighting the need to get your tax return submitted by the end of January each year. We cannot miss those television and newspaper ads. But when it comes to the 31st of July, Her Majesty’s Revenue and Customers (HMRC) is very quiet.
When is a July tax return needed?
If your last self-assessment tax bill was more than £1,000 HMRC will immediately have asked for some money towards your next year’s tax return. In addition, they will ask for another amount by the 31st of July. The taxman refers to this as a “payment on account” and is designed to spread the cost of your next tax bill. However, this can put pressure on your cash flow if you have not been planning for it.
HMRC highlight that taxpayers receive paper statements or digital reminders of what they owe. They will also charge interest on any late payments. The interest starts at 5 per cent rising to 10 per cent after 28 days. Enforced action might also be taken.
When is a payment on account needed?
If you feel that your assessment is wrong you can write to the HMRC and tell them why you feel your circumstances have changed. Be careful if you underestimate your tax liability the taxman will charge you interest. The best way to make sure you’re figures are right is to do your tax return as soon as possible after the tax year ends in April. If your payment on account is wrong, you can apply for a refund from HMRC.
Rachel Efetha from Anstee & Co said-
“Nobody wants to pay more tax than they need to. Especially an unplanned tax bill on estimated figures. We always work closely with our client’s accountants and other professional advisers to ensure a joined up approach. By working as a team we can highlight ways of potentially reducing tax, by pension contributions and other financial planning means. With Anstee & Co being independent, we can look at all the financial planning options available.”
How Anstee & Co can help you.
We are a firm of Independent Financial Advisers. This means that the advice we offer is unbiased. Our team of expert financial planners will work closely with your existing accountant or recommend one that we feel will work well for you.
Why not arrange a meeting with us today. The first meeting is at our cost. At this meeting, we will look to get to know you and help you design a sound financial plan. Meetings can be at a time and location that is convenient for you. The meeting can be at your home or place of work. Additionally, we have offices located in-
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Towcester, Northamptonshire
- London, Pall Mall, Greater London
Also, our financial planners live and make use of meeting rooms in-
- Bedford, Bedfordshire
- Market Harborough, Leicestershire
- Northampton, Brackley, Wellingborough and Raunds in Northamptonshire.