Paying personal tax up front.

[Scrag Meister]

I like to be ahead of the game and clear minded about tax.

I have my tax on normal PAYE wages paid from MyCo each quarter.

Then I have any further tax on divs overs the 40% threshold and tax on rental income after expenses.

Does HMRC mind if I pay any taxes I accrue to them ahead of any return being processed, so in essence accruing in their account.

Obviously I wouldn't do this if interest rates were anywhere near decent, but at the moment it is no great shakes.

[BrilloPad]

You could get a CTD.

But why give them anything atall? Can you not trust yourself not to spend it all?

[Martin at NixonWilliams]

I like to be ahead of the game and clear minded about tax.

I have my tax on normal PAYE wages paid from MyCo each quarter.

Then I have any further tax on divs overs the 40% threshold and tax on rental income after expenses.

Does HMRC mind if I pay any taxes I accrue to them ahead of any return being processed, so in essence accruing in their account.

Obviously I wouldn't do this if interest rates were anywhere near decent, but at the moment it is no great shakes.

As far as I am aware if there is a liability on HMRC's records and you are simply paying before the deadline I cannot see this being a problem however where there is not a liability HMRC will sometimes issue you a refund.

It would be better to get your returns filed as early as possible giving you plenty of time to make the payments due and you will not be at risk of overpaying etc. - For example you could file your 2013/14 return now even though the deadline for submission and payment is not until 31st January 2015, giving you 6m+ to pay as and when you like.

I hope this helps.

Martin

[Scrag Meister]

Update.

Since starting this thread I have been making payments to HMRC as and when I pay myself dividends or receive rent from my house in Devon.

Accountants have just finalised everything to April 2014 and I have just received notification that all my requested payments on account have been cleared to July 2014, and they are issuing a nigh on 3k refund to me.

It'll be due eventually, as is on rental income and dividend payments I have made in the current tax year.

Oh well, I'll have to put it somewhere safe til its needed.

So in answer to my initial question, Yes you can make payments early to HMRC, but they may just send you a large refund cheque if they don't know they need the money yet.