Tax question

Sarah-LouSarah-Lou Well-KnownRegistered Posts: 141
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

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,069
    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.
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    You can do it online or complete form SA303
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