Sun, sea and a summer tax bill?

As the end of July rapidly approaches, some taxpayers are faced with the recurring prospect of yet another tax payment becoming due. Unwelcome news, we know, but there may be something you can do to ease your cash flow planning...
If your income for the 2016/17 tax year is lower than that of the previous year, there may be an opportunity to reduce the amount of tax payable on 31 July. By completing your tax return before this date, it is possible to review your tax position and, where possible, adjust the amount you pay to HMRC.

For those whose income has increased, unfortunately there may be no scope to reduce the amount you have to pay. The 31 January tax payment is made up of a balancing tax payment for the tax year plus a payment on account for the following tax year, making it possibly the largest payment of tax you will make in any given year where your income has increased.

Completing your tax return early ensures you can fully benefit from tax advice as soon as possible. The last
thing anyone wants to receive is an unexpected, large tax bill.

This article was taken from the Summer issue of the Professional Practices Group Newsletter. To download a PDF version of the full newsletter please click here.
Use of Cookies

Like most websites Buzzacott uses cookies. In order to deliver a personalised, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. These cookies are completely safe and secure and will never contain any sensitive information.

×