If you submit tax returns to HM Revenue & Customs (HMRC), a second payment on account in respect of your 2013/14 income tax liability may be due for payment on 31 July 2014. Just under four months away!
Payments on account are based on your tax liability from the previous year. You paid the equivalent of half last year’s tax liability on 31 January 2014 and the remaining half is due on 31 July 2014.
However, if you expect your 2013/2014 income to be less than your total income for the prior year then you may be able to reduce your July payment, meaning you are not paying any more tax than you need to, while at the same time giving your cash flow a boost.
Care needs to be taken; if you reduce it too much you’ll be liable for interest on the difference and a possible penalty. Therefore it is essential to get your accounts and tax return in order before making an adjustment to claim.
SeavorChartered are committed to providing a quick reliable turnaround of the completion of your accounts and tax return. This will enable you to be confident that your July payment is no more than it needs to be.
If you are due to make your second payment on account to HMRC by 31 July and you feel this year’s earnings could be lower than last year’s, contact Sarah Seavor on 01228 492 729, 07712 218540 or sarah@seavorchartered.co.uk to discuss how we can help you reduce the amount you need to pay.
