OK,
So have done first draft of personal self assessment tax return.
£2K to pay in Dividend tax no surprise there.
Payments on account of £2K for tax on possible future dividends,
that's a bit of a surprise!
Given the ongoing economic uncertainties for the UK and contractors,
I have no idea what dividends I might want or be able to declare during 2017-18.
So reducing payments on account would not seem unreasonable,
possibly even to nil, as a conservative approach to managing cashflow.
Does anyone have real, personal experience of whether and in what circumstances HMRC
would apply penalty interest should the eventual dividends and consequent taxation be higher
than the payments on account?
TIA
So have done first draft of personal self assessment tax return.
£2K to pay in Dividend tax no surprise there.
Payments on account of £2K for tax on possible future dividends,
that's a bit of a surprise!
Given the ongoing economic uncertainties for the UK and contractors,
I have no idea what dividends I might want or be able to declare during 2017-18.
So reducing payments on account would not seem unreasonable,
possibly even to nil, as a conservative approach to managing cashflow.
Does anyone have real, personal experience of whether and in what circumstances HMRC
would apply penalty interest should the eventual dividends and consequent taxation be higher
than the payments on account?
TIA
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