Self-assessment is a system used by HM Revenue and Customs (HMRC) for individuals and businesses to report their income and pay any tax owed. If you’re self-employed, earning income from property, or receiving additional income not taxed at source, self-assessment is likely your responsibility. One critical aspect of this system is meeting the payment deadlines to avoid penalties and interest charges. Here’s a detailed guide to understanding the key dates for self-assessment payments in the UK.
Key Deadlines for Self-Assessment Payments
The UK self-assessment system operates on a tax year running from 6 April to 5 April of the following year. Payments are usually required at several stages during the tax year and beyond, depending on your circumstances.
31 January:
o Balancing Payment: This is the deadline for paying any outstanding tax owed for the previous tax year. For example, by 31 January 2025, you must pay any tax due for the 2023/24 tax year.
o First Payment on Account: If your tax bill is more than £1,000 and less than 80% of your tax is deducted at source, you may need to make payments on account. These are advance payments towards your next year’s tax bill. The first payment on account is also due on 31 January.
31 July:
o Second Payment on Account: This is the second installment of your advance payment towards the current tax year’s bill. For instance, the second payment for the 2023/24 tax year is due by 31 July 2024.
5 October:
o Registration Deadline: If you are required to submit a self-assessment for the first time, you must register with HMRC by 5 October following the end of the tax year in which you earned income requiring self-assessment. For example, if you earned untaxed income in the 2023/24 tax year, you need to register by 5 October 2024.
31 October:
o Paper Return Deadline: If you are filing a paper tax return rather than completing it online, it must reach HMRC by 31 October following the end of the tax year. For example, the paper return for 2023/24 must be submitted by 31 October 2024.
30 December:
o Pay Through PAYE Deadline: If you owe less than £3,000 in tax and are already employed or receiving a pension, you can opt to have your tax collected through PAYE. To do this, you must file your online return by 30 December.
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Consequences of Missing Deadlines
Failing to meet payment deadlines can result in penalties and interest charges. HMRC applies a penalty of £100 for missing the filing deadline, which increases over time if the return remains outstanding. For late payments, interest is charged from the date the tax is due until the date it is paid, alongside possible additional penalties for prolonged delays.
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Tips for Staying on Track
• Set Reminders: Mark key dates on your calendar to ensure you never miss a deadline.
• Budget in Advance: Estimate your tax liability early and set aside funds to cover payments on account and any balancing payments.
• Use HMRC Services: HMRC’s online portal allows you to check your tax account, file your return, and make payments easily.
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Staying informed about self-assessment payment dates is essential for managing your tax obligations effectively. By adhering to these deadlines, you can avoid unnecessary penalties and maintain financial peace of mind
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