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Paying your Self-Assessment Tax Return

By admin
17 Jan 2024
Accounts & Compliance

Congratulations on successfully completing your self-assessment tax return! Don’t fail at the finish line by not paying!

Now, let’s navigate the next crucial step – settling your tax bill. While this may seem intricate, HM Revenue & Customs (HMRC) offers several convenient avenues for taxpayers to meet their obligations. This article will guide you through diverse methods to make your self-assessment tax payment.

Online Payment:

The most direct and efficient method is to make your payment online through the HMRC website. Here’s how:

  1. Log in to your HMRC account.
  2. Navigate to the self-assessment section and select ‘Pay now.’
  3. Choose your preferred payment method (debit card, credit card, or bank transfer).
  4. Provide the necessary details and confirm your payment. Note: Credit card payments may incur additional fees, so be mindful of associated charges.

Bank Transfer:

You can execute a direct bank transfer to HMRC using the details on your self-assessment statement. Ensure you include your unique payment reference for proper attribution. This method suits those who prefer handling transactions through their bank.

Direct Debit:

Setting up a direct debit ensures timely payments, helping you avoid penalties for late submissions. Choose between a one-time payment or a regular payment plan, aligning with your financial situation.

Payment by Post:

If you lean towards traditional methods, send a cheque payable to HM Revenue and Customs with the provided payslip from your tax bill statement. Allow ample time for postal delivery and processing.

Paying in Instalments:

If paying the full amount at once is challenging, HMRC offers options for paying in instalments. Contact them promptly to discuss your situation and negotiate a suitable payment plan. Note that interest may be charged on outstanding balances.

Payment on Account:

For those making advance payments, known as ‘payments on account,’ factor this into your financial planning. These payments contribute to your upcoming tax liability, easing the financial burden when your next tax bill is due.

Paying your self-assessment tax bill need not be stressful. Understand the available options, choose a method aligned with your preferences and financial situation, and fulfill your tax obligations with ease. Plan ahead, stay organized, and, if necessary, seek advice from HMRC or a financial professional for a smooth payment process. Stay proactive, and your journey through the tax season will be manageable and straightforward.

If you are unsure if you need to fill in a self-assessment or not then we recommend you read this article

Are you struggling with your self-assessment tax return? Worried about making a mistake? Running out of time? Then give the team at Edge Tax a call

Don’t forget to keep and eye on our socials for more tips  Facebook Instagram and LinkedIn

Filing a self-assessment tax return can be a daunting task for many individuals. However, with proper planning and organisation, the process can be streamlined and stress-free. This article aims to provide a comprehensive guide on preparing for your self-assessment tax return. By following these steps and gathering the necessary documents, you can ensure accuracy, avoid penalties, and make the tax-filing experience a smooth one.

By not completing your tax return on time and with the correct information can lead to a HMRC Tax Investigation against you. T

or the self-employed, this means accurately reporting their income and expenses and paying the correct amount of tax.

While most self-employed individuals are diligent about meeting their tax obligations, there are times when HMRC may launch a tax investigation. These investigations can be a source of anxiety and stress, but understanding the triggers and the process can help ease some of those concerns. In this article, we will explore when and why HMRC investigates the self-employed and what to expect if you find yourself facing an investigation.

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