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Ways to pay your January tax bill.

Businesses, Personal Tax l

Payment of Self Assessment liability

 Make sure you pay HM Revenue and Customs (HMRC) by the deadlines of 31 January and 31 July each year.

If your payment is made after these deadlines, you may be charged interest, interest surcharges and late payment penalties.

Your payments are made up as follows:

31st January

– Balancing payment for the tax return due for filing by this date
– First of two payments on account for the tax year in which the payment is being made

31st July

– Second payment on account

Eg.

On 31st January 2016, your payment will consist of:

– Balancing payment for the tax year 2014/15 (if required)
– First payment on account for the tax year 2015/16 (if required)

On 31 July 2016, you will make the second payment on account for the tax year 2015/16 (if required).

On 31st January 2017, your payment will consist of:

– A balancing payment for 2015/16
– First payment on account for the tax year 2016/17.

Cleared payment is required by the deadline, so you need to decide which payment method you are going to use and allow adequate time for your payment to go through.

Same day or next day

– Online or telephone banking (Faster Payments)

– This is telephone banking with your bank – not over the telephone with HMRC

CHAPS
Online by Credit or Debit Card
At your bank or building society
At the Post Office

3 working days

BACS
Direct Debit (if you’ve set one up before)
By Post

5 working days

Direct Debit (if you haven’t set one up before with HMRC for Self Assessment)

Online or telephone banking, CHAPS and BACS

You will need your 10 digit Unique Tax Reference (UTR) which can be found on the front page of your tax return, and correspondence from HMRC. Use your UTR followed by the letter K as your payment reference.

On you’re payslip HMRC should have sent you, you will find bank the bank details to pay, however the default bank details are as follows:

Account name                HMRC Cumbernauld

Sort Code                      08-32-10

Account number 12001039

Debit or credit card

You will need your 10 digit Unique Tax Reference (UTR) which can be found on the front page of your tax return, and correspondence from HMRC. Use your UTR followed by the letter K as your payment reference.

To pay online, follow the links at https://www.gov.uk/pay-self-assessment-tax-bill/by-debit-or-credit-card-online

There is not charge for payment by debit card, but you will be charged 1.4% for payment by credit card.

At your bank or building society

You can only make payment at your bank/building society if you both:

– still get paper statements from HM Revenue and Customs (HMRC)
– have the paying-in slip HMRC sent you

Make your cheque payable to ‘HM Revenue and Customs only’ followed by your reference number – this is your Unique Taxpayer Reference (UTR) followed by the letter ‘K’. You’ll find it on your paying-in slip and the front page of your tax return itself.

HMRC will accept your payment on the date you make it, and not the date it reaches their account (as long as you pay from Monday to Friday).

At the Post Office

The maximum payment which can be made at the Post Office is £10,000.

You can only make payment at your bank/building society if you both:

– still get paper statements from HM Revenue and Customs (HMRC)
have the paying-in slip HMRC sent you

You need to present your payslip over the counter at a Post Office, along with payment by Debit Card, Cash or Cheque (payable to “Post Office Ltd”).

HMRC will accept your payment on the date you make it, and not the date it reaches their account (as long as you pay from Monday to Friday).

By post

You can send a cheque by post to HM Revenue and Customs (HMRC). Make your cheque payable to ‘HM Revenue and Customs only’ followed by your Unique Taxpayer Reference (UTR) number. You’ll find this on the paying-in slip and front page of your tax return.

Include the paying-in slip HMRC sent you (if you still get paper statements) with your cheque. Don’t fold the paying-in slip or cheque or fasten them together, and send to:

HM Revenue and Customs
Bradford
BD98 1YY

Allow 3 working days for your payment to reach HMRC.

Direct Debit

If you already have a direct debit in place for the payment of Self Assessment, then this will automatically be taken (subject to having adequate available funds), but caution is needed. The payment on 31 January and payment on 31 July are taken via separate DD mandates, and therefore you need to have ensured that both are set up for this to run smoothly.

To set up payment by direct debit, you need to set this up via your online tax account which can be found at https://online.hmrc.gov.uk/login

You can check that your payment has been received through your online account with HMRC at https://online.hmrc.gov.uk/login

If you have any queries or issues around making your payment for Self Assessment, please do not hesitate to contact us.

(Information correct as per HMRC on 11th May 2015)

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