A self-assessment tax return filing deadline available until 30 December is being overlooked.
Susan Spash, partner at Blick Rothenberg, said: “Whilst it is well publicised that the main online filing deadline for self-assessment is 31 January, after the end of the tax year in April, certain taxpayers can obtain a cash flow advantage if they file a month earlier.”
“Taxpayers in PAYE employment who have underpaid tax for 2015/16 of less than £3,000 and file online by midnight on 30 December 2016 can request within the online return that the payment is collected in equal instalments by deduction from pay under the PAYE scheme.
Spash added: “HM Revenue & Customs’ computer system will capture requests and calculate whether the whole of the underpaid tax can be feasibly spread over equal installments in the 2017/18 tax year.
“The underpaid tax does not have to relate to the employment, but can be tax on investment income, property rental profits or, where the annual household income exceeds £50,000, Child Benefit charges.”
According to HMRC, the number of people completing their tax return on Christmas Day last year broke records, with 2,044 individuals submitting their tax return. On Boxing Day, 5,402 people completed their self-assessment online.
Spash said: “Employees who might benefit from this should consider filing early, perhaps in the quieter few days in the last week of December, or join the growing number of people who actually file their online self-assessment returns on Christmas and Boxing Day.”
The final deadline for sending 2015-16 tax returns to HMRC, and paying any tax owed for the 2015-16 tax year, is 31 January 2017.
For more information, please contact Susan Spash at firstname.lastname@example.org