Don't forget to pay your Tax
27 July 2016
If you are registered for self-assessment and with the 31st July rapidly approaching, make sure you pay the second instalment of tax for 2015-16, that falls due on this date, unless no payment is due. Check with us if you are unsure.
HMRC should have sent you a Statement showing what you owe on the 31st July. If you want confirmation of what you owe, please give us a call.
You can pay by:
- Simply filling in the payment slip at the bottom of the statement and take it to your bank with a cheque before the end of the month. Don’t forget to allow enough time for the cheque to clear before the 31st .
- Telephone or online banking using the account information detailed on the HMRC statement.
- HMRC will also accept payments by debit or credit card. You will need to use HMRC’s online payment portal at https://www.tax.service.gov.uk/pay-online/self-assessment.
If your self-employed profits have fallen compared to 2014-15, then you may be able to make an election to reduce the payment on account due on 31st July. Any downward adjustment in tax payable must be based on realistic calculations as HMRC will take a dim view if your tax return for 2015-16, when filed, shows that your downward adjustment in your July payment was excessive.
If you are unable to make the payment due to cash flow difficulties, contact HMRC now to discuss your options as you be able to set up a direct debit instalment plan or otherwise give you more time to pay. You need to do this before the end of the month so you can reduce the possibility of penalties for late payment. Unfortunately, HMRC will still charge you interest on unpaid tax – the current rate charged is 3%.