Within a few years, many taxpayers that are presently required to file a tax return, and most businesses, will be required to file quarterly data with HMRC using the Treasury Making Tax Digital portal.
In which case, the present annual filing obligations will be replaced by quarterly filing obligations.
Paying tax in arrears
Apart from salaried or waged individuals who have their tax and NIC liabilities deducted at the time they are paid self-employed traders and companies pay their tax in arrears.
For example, for the tax year 2021-22, individuals registered for self-assessment pay two estimated instalments – based on previous year’s profits – January and July 2022: and any balancing amount 31 January 2023.
Companies pay their corporation tax...