Today’s revelation in the press was that Her Majesty’s Revenue and Customs (HMRC) want to go straight to our bank account to collect unpaid tax. Of course we should all pay our tax on time; and in actual fact many of us as employees have no choice in the matter as the tax is deducted from our wages before we receive it. The surprise might be for some that HMRC already go direct to the bank accounts of employers to collect the PAYE and National Insurance deducted from their employees, as well as to collect VAT.
Clearly the thought of the Tax Man having access to our own bank accounts makes us all very worried and concerned, as the front pages of the newspapers demonstrated today.
However for those of us who do pay our tax twice a year, those that are self-employed or those that have additional income over and above our PAYE income, it is often difficult to remember to put money aside. The pressures of other expenditure often leads us to believe that we would be able to “borrow” from that amount that is due to the Tax Man and pay it back later in the year. It is important to budget correctly for this and to remember that it is possible to predict your tax liability so that you know exactly what you need to pay well in advance of the payment date. The trick is to do your tax return quickly after the year-end which will help you calculate what the forthcoming liability is going to be, which in turn will help you to budget effectively. Both companies and individuals need to undertake this process, and Wilder Coe Ltd is here to help.
Our Tax team would be delighted to assist you in your tax planning or general tax affairs, so get in touch at email@example.com or call 020 7724 6060.
Written by Mark Saunders, Partner at Wilder Coe Ltd
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