Tax Return Due Date 31st January 2018
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Payment dates of income Tax

Harish Verma

Q: How is the Payment on account calculated?

A: The Payment on Account for a Tax Year is calculated on the Income Tax paid plus the Class 4 National Insurance for the Previous Tax Year.

Example: For the Tax Year 2014/15 Sheila a sole trader paid tax as follows:

Total Income Tax liability £20,400

 Tax deducted at source on savings income £8,400

Class 4 NIC £3,800

The Payment on Account for 2015/16 is based on the income tax paid and class 4 NIC for the previous Tax Year (2014/15)

Total Income Tax liability 2014/15 £20,400

 Less Tax deducted at source on savings income £8,400

Income Tax Payable under Self Assesment £12,000 plus Class 4 NIC £3,800

The Payment on account is £15,800

On 31 January 2016 1/2 the Payment on Account is payable £7,900

On 31 July 2016 1/2 the Payment on Account is Payable £7,900

 

 



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