Reminder 31 July tax payments
The second payment on account for self-assessment taxpayers is due by 31 July. You should have already received a reminder from HMRC of the amount due and how to pay. Clients unsure as to what to pay should contact us to confirm the amount due. Details of how to pay can be found at: https://bit.ly/3PgiSrS
If your income for 2022-23 is less than the previous year’s income 2021-22, you may be able to reduce how much you need to pay.
The self-assessment tax payment you are due to make at 31 July 2023 (the second payment on account for 2022-23) is presently based on the profits/income you earned during 2021-22. If your actual earnings for 2022-23 are estimated to be lower than for 2021-22, you can elect to reduce payments on account payable January and July 2023.
If you can produce a realistic estimate of your income for 2022-23, we can lodge a formal request to HMRC to reduce your tax payments for 2022-23 without actually filing your tax return. The downside of this process is that if your subsequent tax return shows higher income levels than the estimate, then interest charges may be applied by HMRC.
If you have suffered a reduction in income – for 2022-23 compared to 2021-22 – call us now so we can discuss what can be done. Do you have cashflow problems and cannot pay the next tax payment on time? If timely payment is a problem, it is best to contact HMRC in advance of the payment date to agree a payment plan (Time to Pay) to avoid late payment penalties. A Time to Pay arrangement can be set up online via your Government Gateway account or by phone, full details can be found at: https://bit.ly/3Obbi0A
For more information or to discuss any issues raised above please contact Simon Bell by phone on 01376 571358 or email [email protected] .
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This newsletter is written in general terms and therefore cannot be relied on to cover specific situations; applications of the principles set out will depend on the particular circumstances involved and it is recommended that you take professional advice before acting or refraining from acting on any material in the newsletter.