Tax payments due 31 July 2017

Tax deadlines for self-employed and self-assessment

If you are self-employed, or registered for self-assessment, we are approaching “that” time of the year.

Your second instalment on account for 2016-17 is due for payment at the end of the month – by 31 July 2017.

Any payment due will be based on your self-assessment liability for the previous tax year (2015-16) so it is worth underlining that this is a payment on account, and even though it is the second you will have made for 2016-17, it may not cover your total liability for this tax year.

There are two possibilities:

  1. That your income or profits have increased during 2016-17, and that as your payments on account (January and July 2017) were based on your previous year’s income, you may have underpaid tax and NIC. If this is so any balance outstanding will fall due for payment 31 January 2018.
  2. That your income and profits have fallen during 2016-17. In this case assuming you leave your payments on account unchanged, you will likely have overpaid tax and be due a refund.

If the second option applies in your case, it may be worth calculating what your taxable profits and payments on account are likely to be, based on your estimated, lower income for 2016-17. This may well reduce or perhaps eliminate the need for any second payment on account due at the end of this month.

So….the sooner you can work out what your profits and tax liability on those profits for 2016/17 will be, the sooner you’ll know if there is a refund due and if so what it is going to amount to.

Getting your tax returns in order

If you think your income or profits have decreased during 2016-17 (or the accounts ending in that tax year) please call and speak with one of the team here at THP Chartered Accountants, so that we can deal with a formal application to have your payments of account reduced for 2016-17.  Call us today on 0800 6520 025 to see how we can help with your tax returns.