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 2018

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 £3,000 by adjusting your Pay As You Earn (PAYE) tax code. The effect of this is to recover the debt from your income, by increasing the amount that your employer deducts from your wages during the tax year. Your employer will then pay the tax they collect to HM Revenue & Customs on your behalf.

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.

Payment Plan

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 by 31st January 2019 through your Budget Payment Plan, then you will need to make another payment to cover the difference. 

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

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here 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 information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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