At the end of this month many taxpayers in the self assessment system will be required to make their second payment on account for the tax year 2016/17.
This amount is normally estimated based on their tax liability for the preceding year, 2015/16.
Firstly, if your personal tax return for 2016/17 was submitted on time, you have had at least six months notice of this payment.
Secondly, and more importantly, this payment will not increase and it may be possible to reduce it!
If your personal tax return for 2016/17 is completed and submitted by 31st July 2017 then even if your tax bill is greater than the payments on account the additional tax will not have to be paid until 31st January 2018. However, if your tax bill is less than the estimated payments on account then the submission of the 2016/17 return will revise your liability and provide you with a lower amount to pay.
At Perrys we always want our clients to have as much notice and clarity of their tax payments and if possible pay only what they have to. If you would like to discuss your personal tax affairs please contact your local Perrys branch.
Article written by Doug Shanks
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