The UK’s self-employed and those with earnings outside of PAYE were today reminded to make their second Payment on Account before the 31st July deadline. David Redfern, director of DSR Tax Refunds, issued the reminder to the 4.8 million people registered as self-employed in the UK, urging them to ensure that their second payment on account was received by HMRC ahead of next week’s deadline or risk being penalised by HMRC. He extended his warning to those who are not registered as self-employed but have earnings outside of their main employment which are not subject to PAYE.
Payments on Account are used by HMRC to obtain tax revenue for the current tax year, prior to the submission of a Self Assessment tax return. Self-employed workers make two payments to HMRC, one on 31st January and one on 31st July, in respect of their tax bill for the current tax year, based on how much tax they were liable for in the previous tax year. Redfern stated that “the 31st January deadline is familiar to most who are required to submit Self Assessment tax returns, but not so many people are aware that they are required to make payments on account with regard to the current tax year – one to be received by the 31st January deadline and the second payment to reach HMRC by 31st July. Miss this deadline and you risk a penalty of 5% of your unpaid tax bill”.
Redfern issued these words of advice for those taxpayers who were yet to make their payment on account, stating that “if your income this year is substantially less than your income last year, get in touch with HMRC as soon as possible and you should be able to reduce your payments on account to more accurately reflect your income in this tax year. Similarly, if you are having difficulty in paying this second payment on account contact HMRC as soon as you can – you may be able to avoid a penalty if you keep HMRC informed and work with them to pay what you owe. Burying your head in the sand, however, will only escalate the problem”. He added that those who discover they have paid too much in income tax will be able to claim that back as a tax refund.
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About DSR Tax Refunds Ltd
DSR Tax Refunds Ltd (company registration 12541357) are a firm of tax rebate specialists serving clients nationwide. DSR Tax Refunds are tax preparation experts who specialise in identifying potential allowable expenses for tax rebates for clients. Their specialist team can help employed and self-employed subcontractors with all relevant paperwork to ensure their claim is handled in an accurate and efficient manner.
For more about DSR Tax Refunds, visit https://tax-refunds.co.uk/
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DSR Tax Refunds Ltd
Company Registration: 12541357
Registered Office: Suite 637, 109 Vernon House, Friar Lane, Nottingham, NG1 6DQ