The July payment on account to HMRC refers to a tax payment that is due in July for certain individuals and businesses in the UK. This payment is a advance payment towards an individual’s or business’s tax liability for the current tax year.
Who has to pay the July payment on account to HMRC?
The July payment on account to HMRC is required for individuals and businesses who owe more than £1,000 in self-assessment tax. This includes individuals who are self-employed, have income from property, or have other taxable income that is not taxed at source. It also includes businesses that are required to make self-assessment tax payments.
When is the July payment on account due?
The July payment on account is due on the 31st of July each year. This payment is in addition to any other tax payments that may be due, such as quarterly VAT payments or monthly PAYE payments for employees.
How much is the July payment on account?
The amount of the July payment on account is half of the individual’s or business’s total self-assessment tax liability for the previous tax year. For example, if an individual’s total self-assessment tax liability for the 2019/2020 tax year was £4,000, their July payment on account for the 2020/2021 tax year would be £2,000.
It is important to note that the July payment on account is only an advance payment towards the individual’s or business’s total tax liability for the current tax year. This means that the individual or business will still need to pay the remaining balance of their tax liability by the 31st of January of the following year.
Can the July payment on account be deferred or reduced?
In some cases, individuals and businesses may be able to defer or reduce their July payment on account if they are experiencing financial hardship. For example, individuals or businesses who have been impacted by COVID-19 may be eligible for deferral or reduction of their July payment on account.
Individuals and businesses who wish to defer or reduce their July payment on account should contact HMRC to discuss their options. It is important to note that interest may be charged on any deferred or unpaid tax, so it is important to carefully consider the consequences of deferring or reducing the July payment on account.
In conclusion, the July payment on account to HMRC is a tax payment that is required for certain individuals and businesses in the UK. This payment is an advance payment towards the individual’s or business’s total tax liability for the current tax year, and is due on the 31st of July each year. In some cases, individuals and businesses may be able to defer or reduce their July payment on account if they are experiencing financial hardship.
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