When you are residing in the UK, it is impossible to avoid the tax bills. We all are well aware of the fact that there is no way out to make the tax fact an avoidable thing, so it’s better to learn different ways to pay a tax return. Sometimes people are not aware of the all possible to pay the tax to HMRC. They keep going with the only way to pay the tax bill even if it is inconvenient. Several other options can be more convenient and might make the process easy for you as well. However, the rules related to each process are complex call and can change.
Mostly it turns confusing for the individuals who are outside of the PAYE system and still have to manage the tax bill payments. If you are one such individual, you do not need to wander. Here in this guide, we have got you covered with multiple ways of paying tax bills to HMRC. However, before you choose your convenient option, you need to have enough information to make the right choice.
Reach out to our intelligent and clever-minded guys who will love to answer your questions about different ways to pay a tax return.
What are the Different Ways to Pay a Tax Return?
As mentioned above, there are multiple ways that you can consider paying your tax returns according to your convenience. However, you should have enough information about all the possible ways to make the best choice according to your suitability. In the following discussion, we have listed and explained different ways to pay a tax return.
1- Pay Through Direct Debit
The most simple and easiest of all is to pay the tax bills through a direct debit. The relevant deadlines are twice a year in this case. Once at the end of January and the other at the end of July. It takes five working days to complete the process in the case of the first payment. After the first payment is made, other payments take a period of three business working days. This period is short now because the details are already a part of the database. There is a possibility of phone payments.
Moreover, you should ensure to have plenty of time for the process to complete rather than doing it in a rush. As you must aim to avoid any kind of late filing penalty or fines issued to you because of the wrong tax return submission details. If you still need support to make it on time for the first time, it is advisable to seek help from professionals.
2- Pay via Bank
The option of tax bill payments using the post office is no longer available as it brings a lot of delay in the process. The good news is that the payment through the bank is still considered a valid option. You can visit your bank and make the process as accessible as on the bank counters. This is imperative to know that the process of payment through the bank requires a paper statement from HMRC to explain what is the payment that you owe to HMRC.
If you are just close to the date of the deadline, this process will be the most convenient option for you. This is because your payment will be considered the same day by the government even when the amount of money is not received in the government account as yet.
3- Pay Tax to HMRC by Cheque
This is known as a traditional and old way to pay tax bills. However, it still exists and is valid just like other ways. This process takes a little longer than the advanced methods. So always consider having a margin of three days if you are using a cheque for the payment. You need to ensure that you have proof of the postage with you. You will require a special pay-in slip, this will make your cheque valid. Ensure to not staple or fold them with each other.
4- Online Payment of Tax Bills
The most convenient method for most people is still the online tax bill payment. HMRC allows the online payment system and has made the process handy for people. However, you need to provide your Unique Tax Reference (UTR code). This will ensure that your account is allocated for the payment by HMRC. You are also eligible to pay the amount in one go and the same card must be used. The process will not be completed if you do not follow these rules. There is another frustrating factor of this process, which is that there is a limit to using one card for a year.
The Bottom Line
Now that you have gathered a fair amount of information about different ways to pay a tax return, we can say that there are multiple ways to pay tax returns and you should be aware of the basics of all of them together to choose the right option that suits your convenience. It could vary from one individual to another. We hope these few minutes of reading have helped you to develop a better understanding and you will be able to make the right choice for your tax return payments.
Disclaimer: The general information provided in this blog about different ways to pay a tax return includes text and graphics. It does not intend to disregard any of the professional advice.