It’s that time of year again when some of you will owe money to HMRC in relation to your 2nd payment on account for 2016/17.
‘Payments on account’ are advance payments towards your self-assessment tax liability (including Class 4 National insurance) and have to be paid twice a year, unless:
- Your self-assessment tax liability was less than £1,000 in the prior year, or
- You pay more than 80% of your tax liability at source.
Each payment is half your previous year’s tax liability (excluding Class 2 National Insurance) and has to be paid no later than the 31st January and 31st July.
As the 31st July 2017 deadline is today you need to ensure that if you have a payment on account to make that this is paid as soon as possible to avoid interest being applied for late payment.
If you are unsure if you owe anything to HMRC, please speak to your tax adviser who will be able to assist.
For more information on the tax services we offer, please contact Margaret Bunyan on 01324 441266 or firstname.lastname@example.org.