As the deadline to submit a Self Assessment tax returns looms,
nearly 44,800 people have sorted their tax bills totalling almost
£148 million, by setting up a payment plan.
More than 7.7 million Self Assessment customers have already
filed their tax return for the 2022 to 2023 tax year, but HM
Revenue and Customs (HMRC) is reminding anyone who
still needs to pay their tax bill should do so before the
deadline on 31 January or risk facing a penalty.
Those who are unable to pay in full can check online to see if
they can set up a monthly payment plan called Time to Pay. If they
owe less than £30,000, they can use the affordability checker on
GOV.UK to help decide the best arrangements for them. Interest
will be applied to any outstanding balances from 1 February.
Myrtle Lloyd, HMRC’s
Director General for Customer Services, said:
We want to help Self Assessment customers meet their obligations
and there is no time like the present to choose the right payment
option for you. Whether you choose to pay in instalments, via the
HMRC app or using
online banking, search ‘pay your Self Assessment tax bill’ on
GOV.UK for a full list of options.
In addition to those who have set up an online payment plan, in
December 2023, 28,794 customers used the free and secure HMRC app to pay more than £42
million in tax owed. Customers can also receive a tax refund via
the app. They should include their bank account details when
filing, so that if HMRC needs to make a repayment,
they can do so quickly and securely.
For those who pay their current estimated tax bill via Payment on Account,
the first instalment for the 2023 to 2024 tax year is due on 31
January.
A full list of payment options can be found
on GOV.UK. There is also a video on YouTube that explains a
customer’s Self Assessment tax bill and the different ways to
pay.
HMRC will
consider a customer’s reasons for not being able to meet the
deadline for completing their Self Assessment on time. Those
who provide HMRC with a reasonable
excuse may avoid a penalty. The penalties for late tax returns
are:
- an initial £100 fixed penalty, which applies even if there is
no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of £10 per day, up
to a maximum of £900
- after 6 months, a further penalty of 5% of the tax due or
£300, whichever is greater
- after 12 months, another 5% or £300 charge, whichever is
greater
There are also additional penalties for paying late - 5% of the
tax unpaid at 30 days, 6 months and 12 months. Interest will also
be charged on any tax paid late.
People should be aware of the risk of falling victim to scams and
should never share their HMRC login details with anyone,
including a tax agent, if they have one. HMRC scams advice is
available on GOV.UK.
Further information
More information about Self Assessment
44,781 customers have set up a self-serve Time to Pay arrangement
between 6 April 2023 and 16 January 2024.
During January, we’re supporting customers who have queries about
Self Assessment payments, repayments and who need help completing
their tax return on our helpline. For all other queries go
online where you’ll find guidance, videos and tools that will
help you. Go to GOV.UK and search ‘Self Assessment’.
HMRC wants to help
you get your tax right. Lots of information and support is
available online which includes:
It is important that customers let HMRC know of any changes to their
circumstances. Customers can use the HMRC app to update their details
including a new address or name. Customers also need to let us
know if they’ve stopped being self-employed or need to change
their business details. This can be done online at GOV.UK.
