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Is self assessment an expense?

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I'm a self-employed person running a small business. I have two questions:

1. As my Self Assessment for the year 2018 - 2019 year was paid on 31st January 2020 does this mean I can claim this self assessment payment (or some of it) as an expense for my 2019 - 2020 accounts? If so would the whole self assessment payment be an expense or just the elememt that was a payment on account for 2019 - 2020? As there are only 5 days left of this tax year left im just trying to roughly calculate what I will more or less owe in self assessment for when this tax year ends (2019 - 2020) but in order to do so I need to find out the answer to my question.

2. If I do my 2019 - 2020 accounts in early April (as soon as this tax year ends), if my profit is less than last year can an accountant request on my behalf for the amount I will pay in July 2020 (based on half of last years self assessment) to be reduced or even written off altogether? If so, is this standard practice? Or is such a request only applicable in situations where last years tax bill is dramatically different to this years?

Any advice and guidance would be gladly received. 

For your info:
- being self-employed is my only form of income
- I am running the business under my personal name (not through a company)
- I am not VAT registered

Replies (6)

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By Tax Dragon
31st Mar 2020 08:15

1. No.
2. Yes.

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Replying to Tax Dragon:
By Wanderer
31st Mar 2020 08:20

Also note:-
i) Some of the January 2020 payment on account may be refunded.
ii) The July 2020 payment may be deferred under the Covid-19 provisions.

Thanks (1)
By Cheshire
31st Mar 2020 08:18

Its tax, not an expense.

If you cannot understand something so basic, I wonder what else you are getting wrong, maybe already paying too much tax. I would suggest you get an Accountant on board to assess the position.

Thanks (3)
By measuretwice
31st Mar 2020 08:49

Thanks very much for all the kind replies. I really appreciate your help.

Thanks (0)
By MET128
31st Mar 2020 21:32

1. no.
your self assessment payment is the tax you are paying on your profits, it cannot be included as a 'business expense'.

If it could your profits would lower and your tax bill change and you would end up in an ever decreasing spiral!

2. you an request this yourself. You need to log onto your government gateway account to do so.

3. Accounts and tax are complicated and the rules are often miss-understood and are forever changing. Please seek some advice from a local bookkeeper or accountant.

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By Matrix
31st Mar 2020 21:53

If you submit your tax return in early April (or in fact anytime before 31 Jan thinking about it) then there is no need to adjust the payment on account. The tax due in January 2021 will be the tax due per the tax return less the payment on account made in January 2020. Plus the first payment on account for 20-21.

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