Spring 2009 Newsletter Content Oh for a little hindsight Can't pay, won't pay? Shock in Essex Car tax You signed it Don't be late Age before beauty? IHT and falling prices More paper Shopping around Less paper PAYE or not PAYE... Flat rate scheme A change of heart There are limits Do your duty Free lunch VAT a mess Dissatisfaction guaranteed Don't believe it! Too late Tax on tick £100 note Temp reminder

Tax on tick If you are within the self assessment system for income tax, you are likely to have to make payments on account - on 31 January and 31 July 2009 for the tax year 2008/09. These payments are based on your SA tax liability for the previous year, 2007/08. If the current year is worse than the previous - which it seems to be for most people right now - you are allowed to claim to reduce the payments on account. It's likely to be better to leave the money in your own bank account rather than paying it to HMRC and getting it back later, even if they do pay a little interest on it. A claim to reduce POA is supposed to be based on a reasonable estimate of what you are likely to end up paying - ideally, you reduce each payment to half the actual liability for 2008/09. You won't know that yet, but we can help you work out an appropriate figure. You can claim to reduce POA even after you've paid the first one, in which case they will give you some of your money back. If you think this applies to you, we will be happy to help you reduce the payment.