If your tax bill was over £1,000 when you submitted your 5 April 2014 tax return, then it is likely that you will owe a payment of account for the 5 April 2015 tax year.
The deadline is 31 July and it is usually 50% of what the tax bill is.
However, HMRC have only estimated this based on your previous year’s income. So if you had a lower income year in 5 April 2015 than 5 April 2014, you do have the option of reducing the payment on account.
It is better to do this NOW since if you don’t pay by 31 July 2015, you will be charged interest. Also, you do need to make sure it really is lower since HMRC will charge you interest on any under-estimation of your income.
If you don’t need to reduce your payment on account but you are struggling to pay the payment on account then a ‘time to pay’ plan with HMRC may be an option but NOW is the time to alert them (or email me at russell@rsaccountancy.co.uk).
