July 9, 2014 If your income tax bill for 2012-13 was more than £1,000 and less than 80% of this was collected at source (ie through your payslip) then you are required to make two payments on account towards your 2013-14 tax bill; one on 31st January 2014 and the other on 31st July 2014. The second payment on account will be equal to half of your tax bill for 2012-13 and must be paid by 31st July, after which interest will be charged by HMRC. If 2013-14 has been much like the previous tax year in terms of your income this means that you should have paid most, if not all of your tax liability for the tax year that ended on 5th April 2014 before the deadline on 31st January 2015. It is possible to reduce your payments on account if you are certain that your tax liability for 2013-14 will be significantly lower than the payments on account that are due. The best way to know for sure is to get your books to us as soon as possible to enable us to calculate your tax bill for you. If we are able to file your tax return before 31st July and your tax liability is lower than your estimated payments on account, you will be able to pay the lower amount on 31st July. Of course, it is possible that your tax bill is higher than the payments on account. In which case, you will still have until 31st January 2015 to make a payment of the shortfall. We have to stress, that if you elect to reduce your payments on account and the tax due at the end of the year is higher than you estimated it to be, you may have to pay interest and penalties on the shortfall, as well as having to pay a large balancing payment in January. If you are in any doubt, please don’t hesitate to contact us.