Those with straightforward tax affairs who are paid via PAYE may never have to complete a self assessment tax form. For the rest, including the self employed, company directors, trustees and those with a foreign income completion of an annual self assessment form is a necessity.
When it comes to paying tax a few of those who completed a self assessment form will simply pay as usual via PAYE with an adjusted tax code. However, the majority will have two dates circled in red on their calendars; 31 January and 31 July. These are the dates when bi-annual tax payments are due. In effect, those paying tax for the tax year 2010/2011 will have to have made a first interim tax payment on 31 January 2011, a second interim payment on 31 July 2011 with a final balancing payment due on 31 January 2012.
The interim payment due on 31 July is usually preceded by the receipt of a statement advising the amount of tax to be paid. This year, HMRC have substantially underestimated the number of statements to be sent out and this has lead to delays with up to 500,000 statements expected to be issued late. HMRC have advised those affected to pay the amount owed within 30 days of receipt of the statement in order to avoid any penalties being applied.
There are some tax payers who will not be affected by this delay in issuing self assessment statements. These include:
• Those paying on a monthly budget plan
• Those paying by direct debit
• Those whose annual tax is less than £1,000 – generally resulting in interim payments not being required
As tax mitigation specialists Newshams are able to give advice on how tax may affect any private or business transaction and how to put in place an effective mitigation strategy.
Contact us now on 020 7470 8820 and ask to speak to a tax adviser about how we can reduce your tax costs or e-mail us at firstname.lastname@example.org and we’ll get straight back to you.
30th July 2011