If you know you’ll need to submit a self-assessment tax form, then the 31st of January is an important day to remember. The end of the month is also the deadline to pay your first payment on account and balancing payment for the previous tax year. There is still time to take care of business, but you need to act now.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Payments to remember
If you’re a self-employed medical or dental professional, you are required to make payments on account – advance payment of your self-assessment tax bill – every tax year.
Unless your last bill was under £1,000, you’ll need to make two payments on account each year. Half of this will be your liability for the prior year for each payment.
The first payment is due by midnight on 31 January and the second is due 31 July, but if you don’t fully clear your tax bill with these payments, for whatever reason, an additional balancing payment will be required to be made this week as well.
The deadline falls on a Sunday this year, so you’ll need to ensure your payment reaches HMRC on the last working day before the deadline, which will be Friday of this week. Make sure you leave yourself with enough time to pay the most convenient way.
Penalties
You will be subject to penalties if you can’t pay on time and you’ll be responsible for any late payment due.
Filing a late return comes with a charge of £100 and there are additional charges at three, six, and twelve months. Your total may exceed £1,600, plus you’re also subject to interest at 3.75% after 30 days.
On top of that, you may also get hit with additional penalties or surcharges. Even if you’re not sure you will be able to pay your outstanding balance off, it’s best to file.
Payment options
It’s important you ensure your tax payments are made, but it’s easy to get your tax payments taken care of. Depending on how much time you have before the deadline, there are options for payment available.
How to pay:
Same or next day
- online or telephone banking
- CHAPS
- by debit or credit card online
- at the bank or building society (if opting for this method, you’ll need a paying-in slip from HMRC)
3 working days
- BACS
- direct debit (make sure you already have this set up with HMRC)
- via cheque through the post
5 working days
- direct debit (make sure you already have this set up with HMRC)