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Many people are struggling to pay their bills right now, as tax is pushed down the list behind heating and food. If you still have tax outstanding for 2021/22, there are some things you can do.

Firstly, review your payments on account for 2022/23, which are scheduled to be paid in two equal amounts on 31 January 2023 and 31 July 2023. If your profits from your accounts ending in 2022/23 are likely to be lower than in the previous accounts, you will owe less tax for 2022/23 than 2021/22, so you need to apply to reduce the payments on account. We can help you with this.

Secondly, where you made a lower profit than expected (or a loss) for 2021/22, you may be due a tax repayment. This will be set-off against the tax shown as payable by 31 January 2023. However, that sum will include the first payment on account for 2022/23, which you can elect to reduce.

If you have funds coming in that will enable you to pay off your tax bill in chunks, you should apply to HMRC for a “Time to Pay” arrangement. This can be done online, where the outstanding tax does not exceed £30,000 and you have no other tax debts. In other cases, we can help you negotiate a payment plan with HMRC.

Penalties of 5% of the late paid tax can be charged where the final tax payment for the year (“balancing payment”) is more than 30 days late, in addition to interest that is currently charged at 6.5%.

By |2023-04-04T11:02:11+01:00April 4th, 2023|Uncategorised|