Don’t let your tax bill affect your festive joy. Instead, spread your tax payments throughout the year!
25th November 2019
With the festive period fast approaching, it is easy to lose sight of your self-assessment tax return!
If you are employed or receiving a pension and you file your return before 30 December 2019, you can elect to have your tax collected through ‘Pay As You Earn’ (PAYE) rather than paying one lump sum on 31 January 2020.This will effectively mean you spread the payment over 12 months!
The following conditions apply if you wish to do this:
- Your total tax liability is less than £3,000
- You already have tax deducted at source either as an employee or on a pension
- Your total annual income is sufficient that you will not have more than half of your income deducted in tax each month or will not pay double your normal tax through PAYE.
REMEMBER: If you elect for your tax to be collected through the next available PAYE code, you must disclose this on the tax return for the year it is collected, to ensure the calculations are correct.
For further information please visit: https://www.gov.uk/pay-self-assessment-tax-bill/through-your-tax-code
If you would like to discuss the above please contact your usual Whiting & Partners contact or contact us at: https://www.whitingsllp.co.uk/about-us/contact-us/
Disclaimer - All information in this post was correct at time of writing.
