Self-assessment tax payments are easy if you follow the simple steps provided by the Government. We are reminding all clients that if you pay your self-assessment tax in instalments, the second tax payment deadline is the 31st of July. This is the second payment on account for the tax year ending 5th April 2024.
If you’re self-employed, filling out your self-assessment tax return is essential, though it can be tedious. However, your self-assessment tax return must be completed accurately and submitted by the deadline, which is January 31, 2025. Included below is a link, which details how to pay your self-assessment tax bill. The reference you need to include with payment is your 10-digit Unique Tax Reference (UTR) number followed by the letter K.
Ways to pay can be found on the Government website’s ‘Pay self-assessment tax bill’ (use Cumbernauld if picking an account). As accountants Exeter, we have outlined several ways to pay your self-assessment tax bill and provided some practical tips to make the process as straightforward as possible.
Self-assessment is a system for declaring your income and paying taxes to HM Revenue and Customs (HMRC).
For those in employment, typically, income tax is withheld directly from their paychecks by employers. However, if you are self-employed, or receive additional sources of income, you need to file a self-assessment tax return every year to cover your income tax and National Insurance obligations. For more information, read our blog ‘How to register for self assessment?’
This is why you need to submit your tax return after the tax year ends on April 5th 2024. If HMRC requests a tax return from you, sending one is essential.
Once you submit your self-assessment tax return, HMRC will calculate your tax bill. You then have several options to make your payment:
Please note: If a payment deadline falls on a weekend or bank holiday, ensure your payment reaches HMRC by the last working day before, unless using faster payments or paying by debit or credit card. Whether you’re a self-employed sole trader or part of a business partnership our personal tax accountants are here to help you. With our assistance, meeting the self-assessment tax return deadline will be easier.
HMRC will charge interest on the overdue amount if you fail to pay your tax by the due date. The current interest rate is 7.75% (2.5% over the base rate), so it’s important not to miss your payment deadline.
If you anticipate difficulties in meeting your tax payment obligations, it’s important to contact HMRC as soon as possible if you:
HMRC is generally accommodating in setting up payment plans. If you’re unable to pay your tax bill in full, you might be eligible to arrange a payment plan to settle your tax in instalments.
However, HMRC will only approve a payment plan if they believe you can maintain the instalment payments. If an agreement can’t be reached, you must pay the full amount due.
Please follow the link to HMRC’s website if you have difficulties paying your tax bill on time. You will find detailed guidance that will help you set up a payment plan if necessary.
Please note: Ignoring your tax obligations and missing the payment deadline can be costly. Late payments will incur both interest charges and potential additional penalties.
No matter where you are in the UK or abroad, our team of chartered accountants is ready to assist with your tax return needs. We offer a wide range of professional accounting services, including tax returns, cash flow management, capital gains tax, and accounts preparation. If you want to learn more about our services please contact our experts today.
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Dan Routcliffe
Email: dan@sidaways.co.uk
Tel: 01392 360008
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