HMRC normally send out a tax statement this time of the year to all self-assessment taxpayers that have submitted a tax return for 2017-18.

As we reported last week, this will list any balance of tax due for 2017-18 and the amount of any payment on account required for 2018-19 (if any is due). Both amounts will need to be settled on or before 31 January 2019 to avoid interest and possible late payment penalties.

If you don’t receive a statement, but you know how much you need to pay, simply organise an online bank payment to:

HMRC Cumbernauld – sort code 08 32 10 – account number 12001039, or

HMRC Shipley – sort code 08 32 10 – account number 12001020

If you don’t know which account to use send your payment to Cumbernauld.

In either case be sure to quote your ten digit Unique Tax Refence number followed by the letter “K”. For example: 1234567899K. DO NOT make a payment without this number as HMRC will not know who to allocate the payment to.

If you don’t know how much to pay, contact your tax advisor or login to your online tax account.

Will your income be lower 2018-19 compared to 2017-18?

If you believe that your taxable income will be less than the previous tax year, you may be able to elect to reduce any payments on account for 2018-19 that have been calculated as if your tax due for 2018-19 is going to be the same as 2017-18.

Your tax adviser can do this for you or you could contact HMRC’s helpline for advice on how to proceed.

And as we have advised in previous posts on this topic, if you cannot fund your 31 January 2019 tax payment, call HMRC Business Payment Support Service: 0300 200 3835 to organise an agreed repayment schedule. Generally, you will need to clear any arrears before any further tax liabilities fall due for payment.

The following guidance was published on the GOV.UK website 20 December 2018. Much of the guidance has been updated on the basis of a no-deal Brexit.

UK citizens planning a trip to the EU and EEA before 29 March 2019 are not affected by Brexit changes.

The following comments assume a no-deal Brexit and would apply from 29 March 2019

Flying to the EU from the UK

Flights should continue as today. Both the UK and EU want flights to continue without any disruption. There will be no impact to direct flights to non-EU countries.

Before you leave for the airport, check online for the latest travel

Aviation security for passengers

Most passengers will not experience any difference in aviation security screening. The UK will continue to apply robust aviation security measures and prioritise passenger safety and security.

The European Commission has proposed measures to avoid extra security screening of passengers from the UK when transferring to onward flights at EU airports.

Air passenger rights

For air passengers on a flight departing the UK, the same passenger rights as apply today will continue to apply after the UK leaves the EU. For EU registered airlines, EU law will continue to apply in respect of flights to and from the EU.

• passengers subject to denied boarding, delay or cancellation, will be entitled to assistance and compensation on the same basis as today
• passengers with reduced mobility will still be entitled to the same assistance from airports and airlines
• UK consumer protection in the event of insolvency of a travel provider will continue to apply

Travelling by Eurostar to the EU from the UK

Your rights as a rail passenger using either domestic or cross-border rail services will remain unchanged. Passengers on cross-border rail services will continue to be protected by the EU regulation on rail passengers’ rights, which will be brought into UK law.

Travelling by Eurotunnel to the EU from the UK

Your rights as a passenger using Eurotunnel’s cross-border shuttle services will remain unchanged. Passengers can continue to use Eurotunnel’s existing complaints procedure.

Travelling by bus or coach to the EU from the UK

Passengers on cross-border bus and coach services will continue to be protected by the EU regulation on bus and coach passengers’ rights, which will be brought into UK law.

Travelling by sea to the EU from the UK

Most passengers travelling to the EU by sea should not experience any difference to their journey.

Ferry passengers

Passengers on ferry services will continue to be protected by the EU regulation on passengers’ rights, which will be brought into UK law.

Cruising

Cruise operations will continue on the same basis as today. Passengers who embark on a cruise at a UK port will continue to be protected by the EU regulation on maritime passengers’ rights, which will be brought into UK law.

So, there we have it. Based on these comments there would seem to be a smooth transition for travellers in the event of a no-deal Brexit. However, add the following to-dos to your holiday check list if you are travelling to the EU after 29 March 2019:

• Make sure you don’t need a visa for your visit.
• Check out driving restrictions, can you use your UK driving license?
• If using your car, is your insurance still valid for travel to the EU?
• Advise your bank and make sure you will be able to use your cards in your EU destination.
• Make sure your travel insurance cover is still valid.
• Check with the airport or your agents to make sure there are no delays…

Bon voyage.

1 January 2019 – Due date for Corporation Tax due for the year ended 31 March 2018.

19 January 2019 – PAYE and NIC deductions due for month ended 5 January 2019. (If you pay your tax electronically the due date is 22 January 2019)

19 January 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2019.

19 January 2019 – CIS tax deducted for the month ended 5 January 2019 is payable by today.

31 January 2019 – Last day to file 2017-18 self-assessment tax returns online.

31 January 2019 – Balance of self-assessment tax owing for 2017-18 due to be settled on or before today. Also due is any first payment on account for 2018-19.

1 February 2019 – Due date for Corporation Tax payable for the year ended 30 April 2018.

19 February 2019 – PAYE and NIC deductions due for month ended 5 February 2019. (If you pay your tax electronically the due date is 22 February 2019)

19 February 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2019.

19 February 2019 – CIS tax deducted for the month ended 5 February 2019 is payable by today.

This article is also relevant to couples who have entered into a civil partnership.

For the tax year 2018-19, taxpayers can make tax-free capital gains of up to £11,700.

This allowance is available on a per person basis and so married couples (and those in a civil partnership) have a combined CGT allowance of £23,400.

Consider married couple John and Joy. Joy wants to dispose of a block of shares before 6 April 2019, but this will create a taxable gain of £22,000. After her CGT allowance is deducted this will create a CGT bill of £2,060 – Joy is a higher rate taxpayer and so she would pay CGT at 20%.

John is retired and has relatively little income for 2018-19 and no capital gains. It is quite legitimate for Joy to gift 50% of her shares to John before they are sold – gifts between spouses and civil partners are free of CGT. Each party would then sell their half-shares and chargeable gains of £11,000 each would be covered by their £11,700 allowance. Hey presto, no CGT to pay.

John and Joy decide to use the tax saved to fund a well earned winter break abroad. Not a bad outcome and an entirely acceptable tax planning ploy.

Named the additional rate, the highest rate of Income Tax is 45%, and some might say 45% is high enough.

However, if the rate of tax is measured as the relationship between income and tax plus tax related penalties paid, there are times when this 45% can rise, to as much as 90%.

For example, if HMRC discovers that a taxpayer has been negligent in declaring all their income for tax purposes, they can charge a penalty. This can be as much as 100% of the tax due – effectively this doubles the rate of tax charged. And so, if you are paying tax on under-declared income at 45%, and if a 100% penalty is levied, the effective rate of tax charged is 90% of the income declared.

Whilst this may be an extreme example, consider taxpayers whose income exceeds £100,000. For the tax year 2018-19, for every £2 your income exceeds £100,000 you lose £1 of your tax personal allowance. This means that taxable income between £100,000 and £123,700 is taxed at an effective rate of 60%.

All is not what it seems.