Tax Bill

mealmond

Hi

My accountant submitted my earnings to HMRC in May, for last year for a rental property I have.

How long should it be before I get a bill, I know most people don't want a tax bill but I would like to get it paid.

Many Thanks

Martin

[Deleted User]

The tax would be payable by 31st January 2019.

However you may also be required to make payments on account for 2018/19 tax year. The first will be 50% of the balance owing for 2017/18, also due on 31st January 2019 with the second 50% due on 31st July 2019. However, if the amount owed for 2017/18 is less than £1000 OR at least 80% of your TOTAL tax due on all income sources is deducted at source (e,g, at PAYE) you will have no requirement to make such payments.

mealmond

Many thanks for the reply and the information.

The main thing I wanted to know is that my self-assessment form went to the HMRC in May, do I get a letter/bill sent to me to make the payment, I do see a form tracking section online but they don't really tell me anything, or as I know the amount the accountant has told me is due, do I pay that, I assumed wait for a bill.

Thanks

Martin

[Deleted User]

You will receive a statement from HMRC approximately one month before the payment is due i.e. around Christmas. A payment slip will be attached with instructions also as to how to pay securely online.

mealmond

Thanks for the information, I thought I would have got it earlier than that, but that is fine the money is tucked away, saves me coming home every night hoping for a brown envelope, I must be one of the few who wants his tax bill !!!128513;!!!128513;

Martin

00ec25

mealmond wrote: »

Thanks for the information, I thought I would have got it earlier than that, but that is fine the money is tucked away, saves me coming home every night hoping for a brown envelope, I must be one of the few who wants his tax bill !!!128513;!!!128513;

Martin

there is nothing stopping you paying it when you want to
, you do not have to wait for a bill, after all the bill will simply be the figure on your tax return since the whole point is you self assess so you work out what you owe and you pay it on that basis

google how to pay tax to see your options

mealmond

Many thanks 00ec25, I had not realised it worked this way, I thought the tax service checked everything the accountant sent and I would then be sent a bill.

It does look like I can pay now, but now I know I can, I need to decide is to wait until they send me the bill whilst earning a little bit of interest.

Many Thanks

Martin

wesleyad

Just to add, self assessment nowadays is very easy (i submit for my properties, second job and dividends etc. in about 15 minutes once per year), so you might want to look whether an accountant is needed just for one or two properties. Might save you some money.

Pennywise

wesleyad wrote: »

Just to add, self assessment nowadays is very easy (i submit for my properties, second job and dividends etc. in about 15 minutes once per year), so you might want to look whether an accountant is needed just for one or two properties. Might save you some money.

But there have been loads of changes over recent years including:-

1. Removal of wear and tear allowance;
2. Changes in allowability of "capital" items;
3. Changes in allowability on "replacements" basis;
3. Choice of accruals or cash basis;
4. Transition to only basic rate relief on interest.

Further back, changes to what loans/mortgages you can claim interest for against properies (no longer need to be secured on the rental property nor even used to purchase the rental property).

It's one of the areas where there have been the most changes and for the last 4 years, you can't simply copy last year's return.

As an accountant, I'm seeing increasing numbers of people who previously used to do their own and are now getting me to do it instead as they either can't understand/cope with the changes or want tax planning advice to optimise their tax position under the new rules.

Like anything else, including servicing your own car, replacing your own boiler, etc., these things can be done by people who have an active interest, have the time to research, and time/inclination to keep up to date with changes. For some, DIY is fine, for others, an accountant is beneficial.

glider3560

Did the accountant submit the tax return online?


If so, you can login to your personal tax account's self assessment section and see the tax calculation.

mealmond

I agree it all did look easy and probably was to the accountant, but for the price I paid I felt it was worth it, knowing it was done correctly and I could ask any questions.

It was all done online and I have copies of all the paperwork so I know the figures, I have now put that money away in a savings account and will pay it near to when it's due.

Martin