Do you need to make a Self Assessment payment in July?

The second UK Self Assessment deadline is 31 July. The amount due at the end of July follows your first payment, made earlier in the year.

business-861325_640

What is Self Assessment?

Employers usually deduct tax from employees’ wages, pensions and savings automatically by means of PAYE. However, if you’re self-employed, or a director of a company, and live in the UK you must submit a Self Assessment tax return.

Completing and filing this return is time consuming and should be done well in advance to avoid penalties and unnecessary stress. To avoid the frustration of navigating UK tax codes, and wasting hours on the phone with HMRC, we recommend using experienced tax consultants like us.

Do you need to make a payment in July?

All individuals who make advance payments, also known as payments on account, need to make two payments every year, unless:

  • Your last Self Assessment bill was less than £1,000
  • You’ve already paid more than 80% of all the tax you owe

The payment you will be required to make in July is half of your tax bill for the previous tax year. For example: If your tax bill for the 2014/2015 tax year was £3,000, you will have to pay £1,500 as a payment on account for the 2015/2016 tax year on 31 July.

Need help with your Self Assessment return ahead of the 31 July deadline? We’re ready to help. Contact us for any accounting and tax advice.

,