Being the mother of two teenagers, every month seems to be expensive, but especially this time of year – what with the summer holidays just around the corner, July can be one of the most expensive of the year!
Not just for parents though, as this month, those of you who are self-employed will be digging deep into your pockets to pay your second payment on account for the tax year 2017-18.
If you have increased your income for 2017-18, your payments on account January and July 2018 may not cover your actual liability for the year. In this instance, your payments will not automatically be increased but it would be more than prudent to identify this possibility early on so that provisions can be made for your January 2019 payment in advance.
Equally, talk to your accountant if you now have evidence that your income is falling, as you can lodge an application with HMRC to reduce payments on account. Your July payment may be reduced, and dependent upon the circumstances perhaps significantly.
Just a reminder that the deadline to avoid late payment interest and penalties is 31 July 2018.