Sound good...? There may be a way for you to have tax collected via your tax code instead of paying your total bill in January. You can pay your Self-Assessment bill through your PAYE tax code if you submit your Self-Assessment Tax Return online by 30 December.
The tax bill must be less than £3,000 and you must already pay tax through PAYE, for example via employment or pension income.
The Revenue will automatically collect what you owe through your tax code if you meet the above conditions, unless you’ve specifically asked them not to on your Tax Return.
The 2020/21 Tax Return is due 31 January 2022 via online submission, however, as mentioned above, for this election to apply the Tax Return must instead be submitted online by 30 December 2021. The adjustment will then be made to your 2022/23 tax code.
The tax you owe will then be taken from your salary or pension in equal instalments over 12 months, along with your usual tax deductions, beginning April 2022.
For further information or assistance, please contact Lynn Gracie or your usual Anderson Anderson & Brown contact.