Tax question
Sarah-Lou
Registered Posts: 141 Dedicated contributor 🦉
Hi All
Probably should know this but am having a big brain fade moment!
I have a possible new client and was having a chat with them last night - their last trading year was fab had loads of profits and of course had large tax bill. This years trading isn't so good due to various reasons and of course they are going to have their POA based on their fab year. Does HMRC have anything in place to deal with this or is it a bit of tough luck? Their current accountant (who is retiring) said something could be done but I honestly don't know what!
Thanks
Sarah-Lou
Probably should know this but am having a big brain fade moment!
I have a possible new client and was having a chat with them last night - their last trading year was fab had loads of profits and of course had large tax bill. This years trading isn't so good due to various reasons and of course they are going to have their POA based on their fab year. Does HMRC have anything in place to deal with this or is it a bit of tough luck? Their current accountant (who is retiring) said something could be done but I honestly don't know what!
Thanks
Sarah-Lou
0
Comments
-
Assuming sole trade/ partnership, you can claim to reduce payments on account. You can find how to do this in the self employed pages notes.
You can reduce the payments on account to reflect the anticipated tax bill for this year. However, if you reduce them too much and they don't cover this years tax bill, they will pay interest on the difference.0 -
You can do it online or complete form SA3030
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 324 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 94 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership