Payments On Account

5% Late Payment Penalty Relief Announced by HMRC

February 23, 2021/in 2020, 2021, Deadline, Filing deadlines, Income tax, Late return, payments on account, penalties, penalty, Self-assessment, Self-employed, Sole traders /by Taxfile

HM Revenue and Customs (HMRC) has announced that Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1st April 2021.

Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3rd March. But this year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or to set up a payment plan.

Taxpayers have until 28th February 2021 to file any pending tax returns and prevent being charged a late filing penalty (of £100). They then have until 01/04/2021 to pay any outstanding tax or make an arrangement with HMRC for a payment plan before they receive a late payment penalty.

We encourage any of our clients that are struggling to meet their tax obligations to set up a payment plan to spread the cost into monthly instalments. More information can be found on the Government website HERE. You will be able to spread the cost of their self assessment tax bill through to January 2022.

If you have any questions, please do not hesitate to contact us on 020 8761 8000 or, if you still have a 2019/20 tax return to submit, then we can help you get this in on time to avoid the £100 late filing penalty. We will be open on Saturday the 27th & Sunday 28th February.

Tax Time! Opening on Saturdays as of November.

October 15, 2019/in 2019, 2020, Book keeping, Bookkeeping, payments on account, Personal allowance, Self-assessment, Self-employed, Tax, Tax calculation, UTR /by Taxfile

Need Help Filing Your Tax Return?
Make an Appointment to Beat the Rush!

Your Self Assessment Income Tax for 2019-20 will need to be submitted and an initial payment be made to HMRC by no later than 31/01/2021. This means that you need to calculate your income tax for the period 06/04/2019 through to 05/04/2020. We urge anyone who needs to file a 2019/20 Self-Assessment tax return to come and see us soon. By doing so, you’ll avoid the last minute stampede — way too many people leave it until December or January, which is the busiest time in the tax and accounting calendar. While the HMRC deadline for tax returns is the end of January, you run the risk of being caught up in the bottleneck if you leave things later than December. Taxfile files tax returns for thousands of customers during November, December and January, so we’re incredibly busy at that time of year. So, those leaving it until the last minute not only run the risk of being charged more to cover the long hours and overtime that we need to work during January, but they also risk receiving a fine from HMRC if they miss the deadline completely because they left things so late.

So the message is: please book an appointment with us now, to beat the end of year rush.

For Self-Assessment tax returns, records for the period 6th April 2019 to 5th April 2020 are required. For business accounts, we will also need to do accounts based upon the business’s individual year end.

Open for Saturday Appointments from November

Saturday morning appointments should be more convenient for those who work on weekdays so we will be opening our doors on Saturdays for appointments from 2nd November. Our opening times will be 9am to 1pm by appointment only.

To book an appointment, please call 0208 761 8000 or book an appointment online here. Many thanks.

[Updated 7 August 2020]

Payments on account towards 2009/10

September 5, 2009/in Accountants, HMRC, Interest rates, payments on account, South Circular, Tax liability, Tulse Hill /by Taxfile

Payments on account are normally required from any taxpayer who is assessed to income tax, of any amount, for the preceding tax year (HM Revenue and Customs).
These payments are due by the end January and July each year.
You will be asked to make two payments on account for the current tax year if the total tax due in the previous tax year is less than 80 per cent of the tax deducted at source through the Pay As You Earn system and your Self Assessment tax bill for the previous year was over £500.
Each payment on account equals half of the total tax bill that you had to pay directly to HMRC on your income for the previous tax year.
If you expect your income for the current year to be significantly different from the previous year you can ask for these payments to be adjusted. You can reduce your payments on account by filling in an additional form called SA303.
If you ask for your payments to be reduced and it turns out that you did not pay enough tax on account, you would have to pay interest on the difference from the date the payment was due.

HMRC charges interest at a variable rate, currently 2.5% since (applicable since 24/03/09).

From 6 April 2009, the threshold below which taxpayers do not need to make in-year payments on account of their annual income tax liability under the income tax self-assessment system will double from £500 to £1,000.
So if your tax liability in 08/09 is less than £1000, will not have to make instalment payments on 31 January and 31 July 2010 towards that 2009-10 liability, but will instead make a single payment on 31 January 2011.

If you would like to know more about payments on account and in what circumstances they can be reduced, Taxfile‘s tax agents could help.
Just drop us an email at info@taxfile.co.uk or ring us on 020 8761 8000.
Alternatively, you could pop in to see us at our office in Tulse Hill on the South Circular.

5% Late Payment Penalty Relief Announced by HMRC

Tax Time! Opening on Saturdays as of November.

Need Help Filing Your Tax Return?
Make an Appointment to Beat the Rush!

Open for Saturday Appointments from November

Payments on account towards 2009/10

LATEST POSTS

OPENING HOURS

Download our latest brochure:

CONTACT US

ADD THIS SHARE

QUICK LINKS

Archive for category: payments on account

Need Help Filing Your Tax Return? Make an Appointment to Beat the Rush!

Open for Saturday Appointments from November

LATEST POSTS

OPENING HOURS

Download our latest brochure:

CONTACT US

ADD THIS SHARE

QUICK LINKS

Need Help Filing Your Tax Return?
Make an Appointment to Beat the Rush!