Are you due a tax refund this year?

Jul 14, 2016

By now you should have received your end of year P60 form and tax summaries for the year to 5 April 2016.

If you have to send a personal tax return to HMRC it is worth calculating the tax due as soon as you have all the relevant information as you may have paid too much tax.  If you are due a refund it is better to calculate it and claim it now rather than nearer the deadline for submitting your tax return of 31 January 2017.

If you do owe any tax it is better to know now and plan for it rather than trying to find the money with a few days or weeks left until the deadline.

There also may be a possibility of reducing your payments on account if relevant.

If an individual or self employed business is making payments on accounts these are paid in two instalments, the first in July and the second in January each year.  These payments are towards next years tax liability.

In certain circumstances your payments on account can be reduced without penalties.  These are:

  • Profits are expected to decrease in your next financial year compared to the previous year.
  • Taxable profits will decrease because you have purchased equipment which you can claim an allowance against.
  • The business is ceasing to trade.
  • You received a large one off dividend last year which you’re not expecting to receive this year.
If you think that your income or profits may be reducing in the next financial year then it is worthwhile speaking to your Accountant to ensure you get the correct advice regarding your tax payments.

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