File your tax return now and get a cash flow advantage
A special Self-Assessment tax return filing deadline available until the 30th of December is being overlooked, says London Chartered Accountancy firm, Blick Rothenberg.
Whilst it is well publicised that the main online filing deadline for Self-Assessment is 31st January after the end of the tax year, certain taxpayers can obtain a cash flow advantage if they file a month earlier says Tax partner Frank Nash.
He said: “These are taxpayers in PAYE employment who have underpaid tax for 2014/15 of £2,999.99 or less.
“A taxpayer who files online in the period between 6th April 2015 and midnight on 31st December 2015 can request within the online Return that the payment is collected in equal installments by deduction from pay under the PAYE scheme. HM Revenue & Customs’ computer system will capture requests and calculate whether the whole of the underpaid can be feasibly spread over equal installments in the 2016/17 tax year.”
Frank continues: “The underpaid tax does not have to relate to the employment, but can be higher rate income tax on investment income, tax on property rental profits or Child Benefit charges where annual household income exceeds £50,000.
“Employees who might benefit should consider filing early, perhaps in the quieter few days in the last week of December, but perhaps not necessarily join the growing number of c.2000 people who actually file their online Self-Assessment Returns on Christmas Day.”