Reducing 31st January 2014 payments on account

At the end of the month there could be two tax payments due:

1) The balancing payment for the year to 5th April 2013 plus

2) The first payment on account towards the 2013/14 tax year

Payments on account are estimates based on the previous years return, so if the profits or income are expected to be less in the year to 5th April 2014 then it is possible to apply to reduce these.

However, calculations to estimate the payments on account will need to be made as there will be charges (as well as possible penalties) for reducing these when the income turns out to be higher.

With an estimated payment on account in January, it makes sense to complete the 2014 tax return as soon as possible after 5th April 2014 so that the January payment can be confirmed – as well as checking whether the July payment on account also needs adjustment.

If you would like to review your January 2014 payment on account, please get in touch so that we can look at the position.

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