Just a reminder that the deadline is approaching to make your Self Assessment payments on account to HMRC by 31 July.

‘Payments on account’ are payments you need to make twice a year towards your next Self Assessment tax bill (this includes Class 4 National Insurance if you’re self-employed). 

The payments are estimated by HMRC and based on your previous year’s tax bill.  They are split into two equal instalments (with fixed dates of 31 January and 31 July each year) and are designed to spread the cost of your tax bill and keep on top of your payments.

As a Self Assessment taxpayer, you must make these payments to HMRC, unless either:

• the amount of tax you owed last year was less than £1,000
• you paid more than 80% of the tax you owed outside of Self Assessment last year (for example through your tax code or because your bank had already deducted interest on your savings).

If your payments on account don’t cover your tax bill, you will be required to pay any additional tax owed – this is known as a ‘balancing payment’.  Alternatively, if you have paid too much tax, you may be due a tax refund.

You can check how much tax you owe and how much you have already paid by signing in to your online account and select the option to view your latest Self Assessment return.

If you need any help or more information about payments on account and how to pay or you need advice on Self Assessment or any tax issues, please get in touch.

Internet link: HMRC guidance