Taking Account

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  • Taking Account

Tax Deadlines

January 2009

Tax Credits

If you claim tax credits watch out for the significance of the 31 January date. It is the final date for providing your actual earnings details for 2007-08 and renewing your award for 2008-09.

Self Assessment - Two key events:

1. If your tax return for 2008 has not yet been filed, this must be done by 31 January to avoid you being fined. Also this can only be done online. The deadline for submitting paper returns was 31 October 2008.

2. On 31 January 2009 any balance of your Self Assessment tax that was not covered by your payments on account in 2008 falls due for payment. On the same date you should also be making your first payment on account for the current tax year 2008-09.

One planning point regarding payments on account for 2008-09.

Unless you make a specific request to reduce the amount due, your payments on account for 2008-09 will be based on your actual payments for the previous year, 2007-08. If you have prepared management accounts to the end of December 2008 you should be able to estimate your likely results for 2008-09. If they are lower than the previous years results you can ask for the payments on account to be reduced. And don't forget, your taxable profits include deductions for capital expenditure. From the 1 April 2008 certain expenditures qualify for a 100% write off up to a maximum of £50,000.

This is fairly basic tax planning that can be overlooked. If you have any doubts call now, we still have time to lodge an appeal for you - we just need the information.

Finally HM Revenue & Customs do seem to be following through in their commitment to helping tax payers, who for genuine reasons are unable to pay their tax on time. We urge all our readers who find themselves in this position to contact HMRC as soon as possible.

Hilton Sharp & Clarke