ICAEW.com works better with JavaScript enabled.

TAX NEWS

Might a budget payment plan help your self assessment clients?

Article

Published: 25 May 2022 Update History

HMRC is promoting the benefits of early filing of tax returns including the budget payment plan.
There still seems to be a fairly common misunderstanding among taxpayers that filing their self assessment tax return early means earlier payment. Does this apply to your clients?

As ICAEW members will appreciate, filing early can help with financial planning. Filing the 2021/22 return before the end of July 2022 means that the second payment on account due at the end of July will reflect the actual liability for that tax year.

Filing early gives advance warning of the amount to be paid in January 2023 and opens up the possibility of using a budget payment plan to spread the payments.

In many cases, it will take time to assemble all the information needed for the return. However, more than 66,000 taxpayers filed their 2021/22 return on 6 April 2022. This does not quite reach the peak of the more than 96,000 who filed on 6 April 2020 at the start of the COVID-19 pandemic.

2021/22 tax returns will need to include taxable COVID-19 support grants received in that tax year, including the fourth and fifth self-employment income support scheme grants.

ICAEW Know-How from the Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty
The future of tax after COVID

As digital technologies transform society, the UK government is grappling with balancing the books while ensuring its tax system is fit for purpose. Join us as we take a look at the issues and challenges facing the tax system.

Read more

More from the Tax Faculty

Latest news
Making tax digital image
TAXwire

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly enewsletter

Practical guidance
Cover
TAXline

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image
Webinars

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.