Provisional Tax 2016/01 underestimate
Good day, Please may you assist me. My client submitted an IRP6 in august for 2016/01. At the time their contract had ended in July and he had become unemployed thus his taxable income was very low and he did not need to pay any provisional tax. However, the company he was working for has now offered another contract as of end of Sept, and he is now going to have more income than expected and it will mean there is tax to pay.
My question is do he have to resubmit his 2016/01 and make corrections or can he do a higher estimate in the 2016/02 submission. What penalties will he incur? He is an independent contractor so there is no guarantee of what income he will earn in the next months. Thanking you in advance