Many people might be familiar with and know how to pay self-assessment tax but having a guide on hand can help you to be clear before you intend to make payments. You just need to ensure that none of the details are missed out that may increase the chances of penalty risk.
Before we delve into further discussion, let’s have a look at the points of discussion in this article:
- Self Assessment Deadlines
- How to Pay Self-assessment Tax?
- The Bottom Line
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Self Assessment Deadlines:
The deadline might vary and it depends on the situation and requirement accordingly. Here is the detail:
Self-Assessment Tax Return:
One is required to submit the online tax returns by the date, 31st January. However, the paper due deadline is a little earlier comparatively which has to be done on or before 31st October.
Personal Tax:
If there is any personal tax which is due for the yesteryear, it must be paid before 31st January. Moreover, this tells us that the tax for the years 2021-22 must be paid before 31st January 2023.
Account Payment:
Such payments are known as the advance payments for the tax bill. These are also spread out throughout the year. There are two payments that you have to make within a year in this regard. The due date for these payments is 31st July and the other is 31st January.
Moreover, this is important to notice that if you observe that your deadline date is also a public holiday, ensure to make your payments on the last working day before that.
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How to Pay Self-assessment Tax?
If we talk about the ways to make the payments, this is one flexible factor and there are plenty of ways to make the payment that is mentioned below with details.
Debit or Credit card:
If you use your 11 characters reference payment, the chances are that your payment is accepted immediately and not when actually the money is received.
Bank Payment:
It is considered to be a suitable payment method to pay through your bank or the building society but there is the condition for this method that says that one must get the paper statement from HMRC. If the payments are made on a working day, they are accepted on the same day. There is an exception of a long time in case of payments being made from abroad. Your bank can guide you for the required time period in this case.
Bank Transfer:
There are multiple options to make payments, this includes BACS and CHAPS. They are some of the faster ways to make payments and accepted them on the same day as well, only if the day is a working day.
Direct Debit:
It is possible to set your debit card directly with the HMRC online account using payment reference characters. Every time you intend to pay you will be required to set up for a single payment. For instance, you are making a payment, you are required to set up the direct debit two times, once for the payment of July and the other for the payment of January.
Moreover, if the payments are made for the first time, it will require a time period of five working days to clear the payment and the second time, three working days. The condition is to use the same bank details.
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The Bottom Line:
Now that you have developed a better understanding of how to pay self-assessment tax, we can sum up the discussion by saying that there are multiple options to make the payments of self-assessment tax, this makes it a flexible factor. However, to choose the faster method depends on your requirement that might vary according to your situation.
We hope this article helped to have a clear knowledge about the ways we can make payments of self-assessment tax.
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Disclaimer: This article intends to provide general information based on how to pay self-assessment tax.
