Payments on account for the self employed for the tax year ending 5 April 2020 are due by 31 July 2021.
WHAT ARE PAYMENTS ON ACCOUNT
If you’re self employed and your tax bill is over £1,000 you will have to pay payments on account. See our article on payments on account here.
WHEN IS THE DEADLINE FOR MY SECOND PAYMENT ON ACCOUNT
For the tax year ending 5 April 2020 the second payment on account is due by 31 July 2021.
CAN I REDUCE MY PAYMENTS ON ACCOUNT
If your earnings for the year ending 5 April 2021 are lower than last year you can lower your payments on account. This will be the case for many self employed individuals as the impact of the pandemic hits profits.
This can be done online or via your accountant or agent.
WHAT ARE THE CONSEQUENCES OF NOT PAYING
HMRC are in their rights to issue penalties for not paying your liabilities in January and July. In our experience this happens if you’re a repeat offender.
As a minimum HMRC will charge interest on any outstanding balance until paid.
KALA ATKINSON ARE A FIRM OF CHARTERED ACCOUNTANTS BASED IN EAST LONDON.
We have over 30 years experience in helping individuals and small businesses navigate their compliance whilst providing the business advice and the necessary financial tools to grow.
For more information on how we can help you file your tax return contact us today.