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TAX TIP TUESDAY: Paying Your January Tax Bill – What You Need to Know

Our 5-minute read – Tax Tips – for UK doctors and dentists will help you save tax, get organised with your tax affairs and make sure you meet important deadlines with ease.


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice. 


The end of this month – Friday 31st January – is an important date to remember if you need to submit a self-assessment tax form. The end of the week is also the deadline to pay your first payment on account and balancing payment for the previous tax year. With just a few days left, you need to act now.


If you’re a self-employed medical or dental professional, you’re required to make payments on account – advance payment on 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 your liability for the prior year for each payment.

The first is due by midnight on 31 January – this week – 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 is required to be made this week as well.


There will be charges for late payments

If you can’t pay on time you’ll be responsible for any late payment due and you’ll be subject to other penalties:

  • Initial charge of £100 for filing a late return.
  • Additional charges for being three, six, and 12 months late, and your total may exceed £1,600.
  • You’re also subject to a 3.75% interest rate after 30 days.

On top of that, you may also get hit with other penalties or surcharges. It’s best to file even if you’re not confident in your ability to pay your outstanding balance.


Look at your 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 corporate 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)

There are payment plans available if you’d prefer to spread your payments out. If you are paying the full amount, don’t forget to allow yourself time to make your payment because when the deadline gets closer, website traffic might cause some difficulties.


The deadline falls on a Friday this year, but if it ever falls on a weekend or on a bank holiday, you’ll need to ensure your payment reaches HMRC on the last working day before the deadline.


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