Self assessment deadline approaching

Category: Taxation - Posted On: Jan 16 2019

The deadline for submitting your 2017/18 self assessment tax return is 31 January 2019. This is the same deadline for payment of any balancing tax payments for 2017/18 (including income tax, Class 2 and Class 4 NIC, capital gains tax and High Income Child Benefit Charge), together with first payments on account (POA) for 2018/19.

There is a penalty of £100 for any late returns, even if there is no tax due or the return shows a tax refund is due. Additional penalties are also charged for returns more than 3 months late. Where payment of tax liabilities is made late, interest will also be charged and surcharges may apply. It is therefore important to ensure that your tax return is filed and any tax is paid on time as HMRC will only consider appeals against penalties in limited cases where you have a ‘reasonable excuse’.

Where POA are due for 2018/19 these are based on your 2017/18 income, with the payments due by 31 January and 31 July 2019 each being equal to half of your previous year’s tax liability. There may be scope to reduce POAs if your 2018/19 tax liability is expected to be lower, with the following being possible opportunities:

  • lower profits expected in 2018/19, for example due to higher claims for capital allowances
  • more tax deducted at source due to a different mix of income
  • different remuneration packages after a business restructuring
  • higher tax reliefs available, for example due to one-off pension contributions or gift aid donations

Care should be taken when reducing POAs as HMRC will charge interest if these are reduced too far.

If you would like help with your return or reducing payments on account please contact your local office contact, or email