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.
31st January is an important day on any self-employed professional’s calendar. If you’re required to submit a self-assessment tax form, this is your deadline. It’s also the deadline to pay your first payment on account as well as your balancing payment for the previous tax year. And it’s just days away!
How self-assessment works
For each tax year, self-employed medical and dental professionals are required to make payments on account – advance payments towards the tax they’ll owe for the year ahead. For individuals new to self-employment, this is a completely new concept, but not all that difficult to get used to.
There are actually two times each year that you’ll need to make a payment on account – the first, at the end of this month, and the second is 31st July. In the event you still owe tax after these payments, you’ll also have to remit a balancing payment along with your January payment the following year.
Ensuring your tax payments are taken care of is straightforward and simple, but it’s still crucial that they are paid. There are several ways to pay and a fixed date deadline, so HMRC won’t accept any excuses, and you’ll be faced with interest charges and will most likely be charged a late payment penalty.
How to pay:
There are a number of ways to pay your tax bill – ranging from same day to 5 working day payments. Read our FAQ on how to make a payment.
If you feel sticking to a payment schedule throughout the year is a better option for you, you can look into a budget payment plan.
And keep in mind, if you’re paying online during heavy traffic times (like just before the deadline), the portal might experience slowdowns and difficulties, so account for any issues you may encounter ahead of time.
This year, the tax payment deadline falls on a Thursday, 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.