Do you make payment on account for next tax year if closing LTD company?

[craigy1874]

I don’t think you include CG in any payment on account.

Pretty sure I looked that up recently.

Correct

[MrButton]

What about your potential CG exposure for next year?

I don’t think you include CG in any payment on account.

Pretty sure I looked that up recently.

[Manic]

What about your potential CG exposure for next year?

[TheCyclingProgrammer]

As above, the POAs due this Jan and July are for the current tax year (19/20), not the next one.

You should have a good idea of what your tax bill will be for this tax year with only a few months left to go so if you think you’ll be overpaying you can reduce them to match (allow some headroom if you don’t have an exact amount).

[zonkkk]

Like many contractors, I’m finishing my contract in February, closing my LTD company and (most likely) working through an umbrella from April 2020.

I am scheduled to make a payment on account by the end of January for the next tax year. However, if I’m closing my LTD company, does this payment still need to be made? Particularly if I’m going to be taxed at source in future employment?

My accountant advised me to call HMRC and state my situation. This should negate the need to make the payment. I’m curious what others are planning to do.

Thanks.

As far as I understand the payment on account is for the 2019/2020 tax year. So if you've already paid yourself dividends this financial year, you should still pay, whatever is due by Jan 31st then second payment in July. You may want to reduce it to match the tax due for your dividends for this year though.

Then for year 2020/2021 you will need to reduce it to 0.

[Patrick@Intouch]

Yup, get your accountant to do it, either through your self assessment form or if already submitted then online.

[Lance]

Like many contractors, I’m finishing my contract in February, closing my LTD company and (most likely) working through an umbrella from April 2020.

I am scheduled to make a payment on account by the end of January for the next tax year. However, if I’m closing my LTD company, does this payment still need to be made? Particularly if I’m going to be taxed at source in future employment?

My accountant advised me to call HMRC and state my situation. This should negate the need to make the payment. I’m curious what others are planning to do.

Thanks.

your accountant should do this for you IMO.
Mine did when I reduced my POA.
Either way you apply to have it reduced and give a reason.

[Lonerous]

Like many contractors, I’m finishing my contract in February, closing my LTD company and (most likely) working through an umbrella from April 2020.

I am scheduled to make a payment on account by the end of January for the next tax year. However, if I’m closing my LTD company, does this payment still need to be made? Particularly if I’m going to be taxed at source in future employment?

My accountant advised me to call HMRC and state my situation. This should negate the need to make the payment. I’m curious what others are planning to do.

Thanks.