Since Self-Assessment was introduced into the country, many tax-payers have got into the routine of three Tax (and Class 4 National Insurance) payment dates: 

• 31 January before the end of the tax year (1st Payment on Account);

• 31 July after the end of the tax year (2nd Payment on Account); and

• 31 January after the end of the tax year (Balancing Payment + Capital Gains Tax)

The Inland Revenue will charge interest on any payment made late. In addition, if the last payment is made after 28^th February after the end of the tax year, a 5% surcharge will be due. A second 5% surcharge also arises if the payment is after 31 July after the end of the tax year. It is therefore very important to pay all taxes when then fall due.

To ensure that tax bills can be prepared for it is important to ensure that accounts and tax returns are prepared as soon as possible. Preparing tax returns in January to ‘beat the deadline’ does not give much time to budget for the final payment and often leads to a nasty shock!

If you need advice regarding future (or current) tax bills please contact us. We can often prepare an estimate where draft figures are available which can be a useful guide.