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The deadline to pay your tax will depend on the type of business you have.

Sole Traders/Partnerships

Your tax and national insurance is due no later than 31st January following the tax year end that your accounts relate to. So for example, if your tax year ends 5 April 2014 then your tax bill will be due no later than 31stJanuary 2015.

If your tax bill is over £1,000 then you must pay payments on account. This means that HMRC will collect your tax plus the current year’s tax in two payments; one payment before 31st January and the second before 31st July.

Limited Companies

Your corporation tax payable is due no later than 9 months and 1 day after your year end. So for example, if your financial year end was 31st March 2014 then your corporation tax would be due no later than 1st January 2015. Failure to pay the corporation tax on time could result in surcharges and interest being charged to your company.

You can pay your tax bill using the following methods:

Faster payment:

You can transfer the tax you owe directly into HMRC’s bank account through faster payment. This means it will reach HMRC instantly.

Direct debit:

It is possible for you to set up a direct debit with HMRC so that you can pay regular amount towards your tax bill.

Billpay:

This online service allows you to pay your tax bill online with your debit or credit card. You can register for Billpay at the following link https://www.santanderbillpayment.co.uk/hmrc/scripts/index.asp

Bank Giro:

If your bank or building society offers the bank Giro Service then you can pay your tax bill at your own branch with cash or cheque.

Post Office:

You can pay your tax bill at the Post Office with cheque or cash.

Post:

You can send a cheque to HMRC for your tax bill through the post. However HMRC highly recommends that you pay electronically.

 

For further information about when and how you should pay your tax, check out our video guide here.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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