The second ‘payments on account’ deadline is on July 31st. With only one week to go, Stevie Heafford, Tax Partner outlines what ‘payments on account’ are and who needs to complete this tax return.
What are ‘payments on account’?
For those who are self-employed, payments on account are a requirement. This means you must make advance payments for your tax bill in two instalments during the year (this includes Class 4 National Insurance for the self-employed).
These payments are calculated from the bill of your previous tax year. The first payment was due on January 31st and is to be followed by the second self-assessment return – due by midnight on July 31st.
Ways to make your payment
Does this deadline apply to you?
The deadline applies to all those who are self-employed unless:
How to reduce your payments on account
Heafford adds: “Late payment interest rose to 7.5% this month, making it even more important for individuals to file their return on time. If this deadline applies to you, you still have time to arrange your second payment, and if you don’t think you can make this payment, make sure to get in touch with HMRC to try to set up a Time to Pay arrangement.”
To discuss specific circumstances, please get in touch with Stevie Heafford, HW Fisher Tax Partner.