For those who are within the self-assessment system, the deadline for the payment of tax owed to HMRC is 31st January. Once the annual return has been completed, you will know how much tax is due for the relevant year. If any payments on account have been made, these will be deducted from the final bill so that any tax outstanding can be paid. If you have paid more than is due, you will receive a refund.
Making the calculating
If you submit a paper return to HMRC, you will be sent a tax calculation as long as it was submitted before the deadline of 31st October. If you amend your paper return, you will receive an amended calculation. For those who complete and submit their return online, the tax due is displayed on the screen. If HMRC disagrees with your calculation, you will receive a form SA302.
It is important to check the figures on your calculation to ensure that you pay the correct sum. If you believe any figures are incorrect, you may be able to amend your tax return. The figures on the calculation will be used for your self-assessment statement, which informs you of the amount you have to pay.
Making the payment
A calculation will tell you how much you owe HMRC for that year and the due date for payment. It will also give details of payments on account to be made in the next year. These payments are made in January and July of each year. If you haven’t received your self-assessment statement before the due date for the payment of tax, you should use previous statements and your tax calculation to work out the amount owed, so that you can make your payment on time.
Registering for self-assessment online will give you access to all the details you need, including the amount due. You have longer to complete your return, as the deadline for online filing is the end of January. The system is a secure method that receives your return immediately, with no risk of anything being lost by the mail service. You can pay your tax online if you are registered for self-assessment online, using a debit or credit card. You can also use the payment slip to pay the tax due.
Pay through your tax code
You can ask for the money you owe to be collected through your tax code if you have PAYE income. To do this, you must pay sufficient tax to cover the amount owed and your return must have been submitted before 30th December. The amount that you owe must be less than £3,000, and has to be collectible in one tax year.
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