Tax question... is this right ?

[sythai]

Speaking to a plumber on site today...

And he reckons that you now have to pay half your tax in advance for the coming year ??

New one to me, hope not !! (This is for self assessment - sole trader - not limited.)

I just put my books in every April and pay in full a month or so later.

 

[PC Electrics]

He's sort of right!

The tax year ends on April 5. The full tax liability for that tax year becomes payable on the following Jan 31st. At the same time you pay half your anticipated tax liability for the new tax year (now 9 months in). The other half is due 31st July. The following Jan 31st you put in your SA and pay any balance (or recieve a refund). It's a sort of very loose paye system.

 

[sythai]

How longs that been going then.... wonder why my accountant never mentioned it to me ?

Slightly confusing, so would I be right in thinking I need to pay my 6 months advance in a few days time (31st Jan) ?

 

[PC Electrics]

It's always been that way.

You best see your accountant.

 

[sythai]

Will give him a buzz Monday to see what its all about.....

Had a couple of accountants over last 7 years of self assessment and I've always just paid the bill all at once, maybe they do it differently down here:rolleyes2:

I just love tax :sleep1::sleep1:

Thank you,

Sy