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.
Do you have to pay?
Failure to pay your second tax payment on account (POA), if it is due, may result in added interest.
However, if your income or profits have reduced in the year to 5 April 2018, and you think your tax bill may be lower in January 2019, then you can take steps to reducing this July POA.
To do this you need to speak to your accountant to prepare either draft financial accounts, or a draft tax estimate. There is a formal process to reducing your Payment on Account, which they can help you with.
How to Pay
Whilst there are no surcharges that apply for the POA, paying it on-time keeps you in good favour with the taxman, and keeps your taxes up to date.
HMRC make it easy for you to pay your tax with plenty of payment options.
As it is now 31 July, using one of the payment methods for the “same or next day” will be preferable.
Same or next day
- online or telephone banking
- CHAPS
- by debit or credit card online
- at your bank or building society – a paying-in slip from HMRC is required
- at the Post Office – a paying-in slip from HMRC is required
3 working days
- BACS
- Direct Debit (if you’ve set one up with HMRC before)
- By post, with a cheque
5 working days
- Direct Debit (if you haven’t set one up with HMRC before)