Self-assessment deadline approaching

Self-assessment deadline approaching

The Chancellor may have proposed abolishing tax deadlines for most people but for those who make payments on account there are still deadlines to remember and one of them is only a week away, warns ACCA (the Association of Chartered Certified Accountants).

Payments on account are advance payments towards the final tax bill, including Class 4 National Insurance for those who are self-employed. The deadline for the first payment is 31 July.

Chas Roy-Chowdhury, ACCA head of taxation, said: “Following the Chancellor’s announcement in March many people think tax deadlines are a thing of the past, but that isn’t true. Taxpayers in self-assessment who can’t clear their bill through an employer’s PAYE scheme (most sole traders and partners) have to pay half their tax on account, based on last year’s liability.

“With the rise in the number of self-employed people over the past five years the number of people who have to pay on account will likely rise as well. If you know you will be getting a tax bill come January you must remember the deadlines for payment throughout the year.”