A warning has been issued by the Association of Chartered Certified Accountants (ACCA) to remind self-employed people about the summer tax payment deadline.
Everyone seems to be aware of the January 31st deadline for submitting your tax returns and paying taxes. However, this is only an upfront payment, it isn’t all of it. The rest is due in the summer.
4.8 million self-employed people in the UK will be required to make a tax payment by 31st July. The summer is not usually the time anyone wants to be thinking about taxes so it can catch a lot of people off guard.
Failure to pay will result in penalties from HMRC. So it’s always best to keep tax deadlines in mind so that you’re not caught by surprise in the future.
Chas Roy-Chowdhury, head of taxation at ACCA commented: “After a hectic pre-holiday rush, dealing with a tax payment is probably the last thing on many people’s minds. With Sterling in such a state of flux, many holiday-makers have probably been more focused on exchange rates and how to afford those extra holiday treats
“However, this is not something that can be left until you come back from your summer break, or even leaving it until the last minute and trying to do it yourself. The consequences of not paying on time or paying the wrong amount are high. The current fine is 5% of tax owed which is a massive amount in the era of near zero interest rates.
“Many self-employed, especially those who have recently made the move to become so, may not even be fully aware of this process as the July deadline is not the most publicised and is hidden in the depths of the holiday season. There is a risk that many taxpayers risk getting caught out. Ignorance and naivety are no excuse when it comes to tax filing.”
For those struggling
This deadline will no doubt come as a surprise for many new business owners and contractors. For those who will struggle to make the deadline or need any other information, you can call the HMRC helpline.
However, if you require more long term help with your tax liabilities, then hiring an accountant is the best way to go. An accountant will manage your tax liabilities and other financial responsibilities through the year so you can have some peace of mind that you’re doing everything above board.
Has the deadline come as a shock to you? If you need any help with your accounts, you can call us on 020 3355 4047 or contact us here.
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About The Author
An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.