- Original Poster
- #1
I'm just finalising my tax return for 2018-19. Obviously I'm due to pay the balancing payment for 18-19 and the first payment for 19-20 by the end of next month.
At the end of the 18-19 tax year, my position changed from being self-employed to being a director & shareholder of a business. As such, I believe my tax liability will decrease, as payments are now made as dividends (after a base salary of around £8,000).
Currently, based on my 18-19 tax return, my 19-20 liability is about £8,500. Based on a few fag packet calculations, I believe my 19-20 liability will actually be closer to £4,750.
Going to the online form on the HMRC website reads as follows:
The reasons being one of the following:
Am I correct in thinking that I should submit the form a suggest to reduce each payment on account to £2,375? And as a reason being "my business profits are down/my business has ceased".
I've read that if you reduce by too much that you'll owe interest on the difference. Is there an accurate way of calculating the tax liability given the tax year hasn't ended for 19-20.
Finally, if I were to submit this form now, presumably it would reduce the amount I need to pay on 31st Jan 2020? And if I weren't to submit it, when would I get a refund for the overpaid amount - presumably not until I submit a tax return for 19-20?
At the end of the 18-19 tax year, my position changed from being self-employed to being a director & shareholder of a business. As such, I believe my tax liability will decrease, as payments are now made as dividends (after a base salary of around £8,000).
Currently, based on my 18-19 tax return, my 19-20 liability is about £8,500. Based on a few fag packet calculations, I believe my 19-20 liability will actually be closer to £4,750.
Going to the online form on the HMRC website reads as follows:
The reasons being one of the following:
Am I correct in thinking that I should submit the form a suggest to reduce each payment on account to £2,375? And as a reason being "my business profits are down/my business has ceased".
I've read that if you reduce by too much that you'll owe interest on the difference. Is there an accurate way of calculating the tax liability given the tax year hasn't ended for 19-20.
Finally, if I were to submit this form now, presumably it would reduce the amount I need to pay on 31st Jan 2020? And if I weren't to submit it, when would I get a refund for the overpaid amount - presumably not until I submit a tax return for 19-20?
