Payments on account: What, when and why? скачать в хорошем качестве

Payments on account: What, when and why?

At Coconut we're here to help you keep track of all of the aspects of your sole trader tax. And if you've submitted a tax return before, you may have been told you need to pay payments on account. Think of payments on account as a way of paying your tax bill off in advance. The idea is to spread the cost of the upcoming year’s tax bill. Your payments are calculated by looking at your previous tax bill and assuming you’ll be earning the same amount the year after. Thanks to Covid-19, the assumptions used to work out your payments for this year might not be right if your business has been impacted by the pandemic. But you don’t need to worry if you think your payments are higher than they should be and you’re not sure how you’re going to be able to make them thanks to reduced income. Because at Coconut, we’re making tax simple for sole traders and this short video will tell you everything you need to know. Still got questions? If in doubt it's always worth speaking with an accountant, as they can advise on your specific situation and help make sure you pay the right amount of tax.