Reduce your July 31 Payment on Account

If you are registered for self-assessment and have an annual tax bill of £1,000 or more, HMRC require you to make a payment on account towards your 2015/2016 tax bill by 31 July 2016. Under the Payments on Account regime, the amount payable is based on your prior year tax bill. For example, if you had a tax bill of £5,000 for the year ended 5 April 2015, Payments on Account would be £2,500 by 31 January 2016 and £2,500 by 31 July 2016.

But if your taxable profits have dropped in the past 12 months, then you can apply to make a reduced payment on account. Factors to consider include:
• A reduction in turnover and/or an increase in operating costs;
• Significant repairs and maintenance costs; or
• Purchase of a machine or other capital equipment;

If you believe that your taxable profits were less in the year to 5 April 2016 than in previous years, please contact Claire McElduff on 028 8772 4697 for advice on reducing your next payment.

Posted on July 20, 2016