If you’re a self-assessed taxpayer, then your second income tax payment on account for the 2016/17 tax year is due this month – July 31.
The payment will have been calculated based on your final tax liability for the year ended April 5 2016, with the first payment having been made in January 2017, and the credit for both payments is then taken into account when completing the 2017 self-assessment tax return.
If you don’t make the payment by July 31, then interest will start to accrue on the unpaid amount from August 1 until the payment is made.
However, if you feel your income is lower than in the previous tax year (2015/16) you may still have time to reduce the payment due. But remember – if you elect to reduce the payments and then the final liability is higher you may end up paying interest on the difference between the reduced and actual figures.
If you would like advice or help with any taxation matters, please get in touch with the team at Regulatory Accounting.