Our Glasgow chartered accountants can help you keep up to date with tax dates! An accountant from The Kelvin Partnership will be able to help you to make sense of these tax dates.
The Balancing Payment
First off an accountant from The Kelvin Partnership will inform you of tax dates. Then, after submitting your tax return to HMRC, you will then be aware of what you owe. The balancing payment is the outstanding amount of tax you owe, based on your tax return for the previous year. For example, you have paid a total tax of £40,000 based on the tax year 2014/15, however your total tax owed for the tax year 2015/2016 is £60,000 based on your 2016 tax return. Therefore, you have an outstanding balance of £20,000 and this is known as the balancing payment. This is due on the 31st of January 2017. Give a Glasgow accountant a chance to help you!
Payments on account
When it comes to tax, our Glasgow chartered accountants understand everything there is to know. To prevent people from becoming indebted to HMRC, payments on account spread the cost of your tax bill across two instalments throughout the year. The two instalments are 50% of the total tax due for the previous year. So, if for example, you owe £60,000 for the year of 2015/16. £30,000 of this will be paid on the 31st of January 2017. The other instalment of £30,000 is due on the 31st of July 2017. There are additional factors to consider as there are circumstances where a payment on account will not be due or you may owe more than initially calculated. If you feel you would like a business support session, check out our last post, which covers tax saving ideas.
How An accountant Can Help You
It is important that you provide your tax return early, so there is time for planning and an opportunity to be thorough with the information you are supplying. An accountant can take the lead making sure you are prepared. Ensuring that no important dates of payment are missed. If you are looking for help before meeting with an accountant, check out our online self-assessment help sheets. Our team of Glasgow chartered accountants can help you out!
Glasgow Chartered Accountants
If you would like anymore information about payment plans for the tax year or about any other of our services, contact us.