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Belief system; Foreign misdemeanour; Property pitfalls; Sticky wicket
Belief system
Basis of reducing payments on account of income tax on self-assessment form.
Box 10 of the tax calculation summary on the self-assessment form give taxpayers the option to reduce income tax payments on account if a reduction in earnings is expected in the next tax year.
On form SA303 HMRC states: ‘You can claim if you believe that your net income tax and class 4 NICs payable for the tax year will be less than for the previous tax year.’
Often clients are keen to reduce payments on accounts by as much as possible because this will ease their cashflow. Although HMRC warns: ‘if you pay less than you need to we will charge you interest’ in many cases the cashflow benefit appears to justify any interest due.
On the face of it it seems that a client’s ‘belief’ is a sufficient basis....
