Date posted: 24th Nov 2022
As we head towards the festive period, a lot of people may focus on completing their tax returns over the festive period or gathering information to complete this in January 2023 – BUT – could this be a mistake?
If you are a PAYE taxpayer and have a 2021/22 liability of less than £3,000, then it may be possible to spread the liability over the 2023/24 tax year by asking HMRC to change your PAYE code to collect the tax due in 12 monthly instalments from your salary from April 2023 to March 2024.
However, you can only ask HMRC to do this if you have submitted your tax return by 30 December 2022 (not 31 December 2022).
So a delay in completing your tax return, could mean that you will have to pay the tax in full on 31 January 2023 and with households feeling the squeeze on income due to the energy crisis and inflation impacting household income, this isn’t necessarily a good time to be paying lump sum tax bills. So early completion of your tax return, could help cashflow and importantly, allow you to plan your finances better.
Who knows, you may actually be due a refund which may come in handy over the Christmas period – so don’t delay, complete your tax return today!
If you have any queries about completing your tax return or need a reminder about what information is required, please give us a call.