The deadline for paying your Self Assessment tax bill is usually 31st January after the end of the tax year. If you file your return online, you have an extra 3 months to pay, and the deadline is 31st July. If you cannot pay your tax bill by the due date, you may have to pay interest on the outstanding amount. HMRC may also take enforcement action, such as sending you a reminder or issuing a County Court Judgement (CCJ). To avoid late payment penalties and charges, it is important to ensure that your tax return is filed and your tax bill is paid by the relevant deadline. You can visit HMRC’s website for more information on Self Assessment deadlines and payment options.
Payment Deadlines for Different Taxpayers
Self-Employed Individuals and Business Owners
If you’re self-employed or own a business, your payment deadlines are as follows:
- First Payment on Account (POA): July 31st
- Second POA: January 31st
- Self Assessment Tax Return and Payment: January 31st
Non-Self-Employed Taxpayers
If you’re not self-employed, you have one payment deadline:
- January 31st: Self Assessment Tax Return and Payment
Table of Payment Deadlines
| Payment | Self-Employed/Business Owners | Non-Self-Employed |
|---|---|---|
| First Payment on Account (POA) | July 31st | N/A |
| Second POA | January 31st | N/A |
| Self Assessment Tax Return and Payment | January 31st | January 31st |
When Your Self Assessment Tax Payment is Due
In the UK, the deadline for paying your Self Assessment tax bill is 31 January following the end of the tax year (5 April to 5 April).
This means that you have until 31 January 2024 to pay any tax due on your 2022/23 tax return, and until 31 January 2025 for your 2023/24 tax return.
Penalties for Late Payments
- If you pay your tax late, you will be charged interest on the outstanding amount. The interest rate is currently 3% per year.
- If you are more than 30 days late in paying your tax, you will be charged a penalty of 5% of the outstanding amount.
- If you are more than six months late in paying your tax, you will be charged a further penalty of 5% of the outstanding amount.
- If you have not paid your tax within 12 months of the due date, HM Revenue and Customs (HMRC) may take legal action against you.
How to Avoid Penalties
- The best way to avoid penalties is to pay your tax on time.
- If you are unable to pay your tax on time, you can contact HMRC to make a payment arrangement. However, you will still be charged interest on the outstanding amount.
- You can also set up a Direct Debit to pay your tax bill automatically.
Time to File Your Tax Return
As a self-employed individual or a company director in the UK, you must file a Self Assessment tax return to report your income and expenses. The deadline for filing your tax return is usually January 31st following the end of the tax year (April 6th if you file online).
Here’s a breakdown of the key dates:
- Tax year ends: 5 April
- Paper return filing deadline: 31 October
- Online return filing deadline: 31 January
If you miss the filing deadline, you may face penalties and interest charges on any outstanding tax.
Note that the deadline for paying your Self Assessment tax bill is also January 31st. However, you may be able to set up a payment plan to spread out the cost of your tax bill.
Paying Your Self Assessment Tax Bill
You can pay your Self Assessment tax bill online, by phone, or by post.
- Online: You can pay online through the GOV.UK website. You will need your Unique Taxpayer Reference (UTR) and a debit or credit card.
- Phone: You can pay by phone by calling the HMRC helpline on 0300 200 3300. You will need your UTR and a debit or credit card.
- Post: You can pay by post by sending a cheque or postal order to the address on your tax return.
If you are unable to pay your tax bill in full by the deadline, you may be able to set up a payment plan. To do this, you will need to contact HMRC and explain your circumstances.
Penalties for Late Payment
If you miss the deadline for paying your Self Assessment tax bill, you will be charged penalties and interest. The penalties are as follows:
| Late payment penalty | Amount |
|---|---|
| First late payment penalty | 5% of the outstanding tax |
| Second late payment penalty | 5% of the outstanding tax (charged 6 months after the first penalty) |
| Daily penalty | 0.25% of the outstanding tax (charged from 3 months after the second penalty) |
In addition to the penalties, you will also be charged interest on the outstanding tax.
Deadlines for Self-Assessment Tax Payments
Self-Assessment tax is due in two instalments, with the first payment due on 31st January and the second on 31st July.
Calculating Your Tax Bill
- You must calculate your tax bill by 31st January each year.
- You can use HMRC’s online tax calculator or software to do this.
Making Your Payments
- You can make payments online, by phone, or by post.
- If you pay online or by phone, the payment will be credited to your account immediately.
- If you pay by post, the payment will take a few days to reach HMRC.
Late Payment Penalties
If you miss the payment deadline, you will be charged a late payment penalty. The penalty is 5% of the outstanding tax for each month that the payment is late, up to a maximum of 30%.
Self-Assessment Payment Plans
If you are unable to pay your Self-Assessment tax bill in full, you can set up a payment plan with HMRC. This will allow you to spread the cost of your tax bill over a period of time.
- To set up a payment plan, you will need to contact HMRC and provide them with your income and expenditure details.
- HMRC will then assess your situation and agree a payment plan that is affordable for you.
Benefits of a Payment Plan
- Avoids late payment penalties
- Spreads the cost of your tax bill over a period of time
- Gives you peace of mind knowing that you are meeting your tax obligations
Table: Self-Assessment Tax Payment Deadlines
| Instalment | Due Date |
|---|---|
| First | 31st January |
| Second | 31st July |
Well, there you have it, my friend! You now know the ins and outs of when to pay your Self Assessment tax. I hope this article has helped clear up any confusion and given you peace of mind. Remember, the deadline is coming up soon, so don’t put it off any longer. Get your tax affairs in order and you can rest easy knowing you’re all sorted. Thanks for stopping by! If you have any more tax-related questions, be sure to check out our other articles. We’re always here to help you navigate the tax maze. Until next time, stay informed and keep your finances on track!