How to make your payment on account.

News, Personal Tax, Sole Trader,

It’s that time of year again, when your payment on account must be made with the deadline being the 31st July. There are some important considerations around how to pay your tax bill, with time being the primary one!

We’ve collated the various methods to make your payment on account, which you can download below. Bear in mind though that each method will take time to set up. The fastest method is through online banking, while it can take up to five working days to make your payment by Direct Debit.

HMRC recommend using an electric form of payment if possible as it is deemed more secure.

In the same way that it’s advisable to get your Tax Return completed early, so that you know and can prepare for the amount you need to pay, it’s a good idea to get your payment on account set up sooner rather than later. Late payments will always attract interest and penalty charges.

If your income for this year has reduced significantly over last, you may be able to reduce your payment on account. It’s really important to get the estimate of your reduced income right though, or you may end up paying interest on any unpaid tax amount. If you think this may apply to you, please get in touch as soon as possible.

If you already know that you’ll struggle to make your payment, don’t ignore the problem! Give HMRC a call on 0300 200 3835 to see if you can make an arrangement to pay in installments. You’ll need to provide:

  1. Good reasons why you can’t pay.
  2. A realistic proposal to clear the liability in a reasonable time scale.
  3. Financial information to support your proposal.

Don’t wait until after the due date to call, as they’re likely to be much less accommodating!

As ever, if you have any questions around how to pay your tax bill, do contact us.

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