How to pay your tax bill

I have a full time job and in my spare time, I also have a craft business which I look after at weekends and evenings. Finding the money for my tax bill every January is always a bit of a struggle- especially after Christmas. Is there anything I can do to make my tax bill a bit more manageable?

1st November 2015

Yes, you have 2 main options:

Collected from your wages

You could opt to have it collected from your wages through your tax code. HM Revenue and Customs (HMRC) can now collect debts of up to £17,000 by adjusting your Pay As You Earn (PAYE) tax code. HMRC refers to this as ‘coding out’. The effect of this is to recover the debt from your income, by increasing the amount that we deduct from your income during the tax year.

Taxpayers wishing to have their tax bills coded out should tick the appropriate box on their tax return and submit it by 31st October if filing on paper or 30 December if filing online.

Direct Debit

Or you could set up a Budget Payment Plan for Self Assessment. Budget Payment Plans are available to Self Assessment customers who pay by online Direct Debit and are up to date to with their payments.

If you haven't paid the full amount you owe through your Budget Payment Plan then you will need to make another payment to cover the difference. You can do this by setting up another Direct Debit and your payment must reach HMRC by the due date.

If you'd like assistance in managing your tax affairs, contact us to be put in touch with your local TaxAssist Accountant who would be happy to help.

By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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