Check your provisional tax assessment(s) for 2018!

It is not unusual for this time of year to see provisional assessments for income and corporation tax coming thick and fast, demanding up-front initial payment or confirming a rebate. Those of you who have recently received one or more of these provisional assessments would do well to check them carefully or send them on to us for our scrutiny. Provisional assessments are drawn up on the basis of previous years’ figures and are therefore not necessarily up to date (and the last thing you need is an unpleasant surprise from the collector of taxes!).

These are some points for attention to be taken into consideration (irrespective of whether you are a business owner or a private individual) when giving provisional tax assessments the once-over:

• make sure that the profit shown in the provisional assessment concurs with the profit projection for 2018 for your private limited-liability company or sole tradership;
• if you are set to collect dividends in 2018, make allowances for the income tax you will have to pay;
• check whether the mortgage interest payments as per the provisional assessment concur with your actual mortgage interest charge for 2018. If you are about to refinance or are planning to renegotiate your home loan conditions, the penalty you may have to pay will also qualify for tax relief, resulting in an increase in your tax rebate;
• if you own substantial equity in a private capacity, this may well translate into a considerable income tax charge. Check whether your private equity is adequately reflected in the provisional income tax assessment;
• several lesser known tax credits are available to private individuals in connection with things such as healthcare expenses, giftings, expenditure in connection with listed buildings, annuity premium charges or occupational disability insurance charges, tuition fees and study charges, and so on.

Please do not hesitate to contact us with any additional questions you may have regarding your provisional tax assessment(s).

Dutch version: Controleer de voorlopige aanslag 2018!