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In danger of paying too much tax?
Freelancers and the self employed beware!
Your second payment on account to HMRC is due, but will you be paying too much tax over to HMRC this time? It is thought as many as one million people may be about to do so.
So why is this the case?
Payments on account are calculated based on the previous years profits. Did you make as much money last year whilst we were all going through lockdowns due to the pandemic?
If you did not then you need to apply to HMRC for your payments on account to be reduced. However do take care because if you underestimate the tax that is due you will be liable for interest on any tax that has not been calculated and paid correctly.
One option is to get your paperwork up to date and file your 20/21 self assessment tax return early. HMRC will then update your account and you will only be asked to pay the tax that is due.
If you want some help to sort things out properly with HMRC as you are aware you do need your payments on account to be reduced, contact Winchester Bourne.
If you would like us to complete your accounts for you or complete your self assessment return for 20/21 so that your records with HMRC are up to date then please do not hesitate to give us a call on 01962 715671 or email me [email protected] and we will be delighted to help you get this right and to save you paying over too much tax to HMRC when for many cashflow is tight!
Winchester Bourne, a team of accounting specialists based at Colden Common, where our fees are transparent and good value and where we are here to make your life much easier and better!!
Now that's worth raising a glass to !!
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