In order to complete a tax return, a self assessment will need to be fully completed and sent to the government. Tax returns can now be done online, with the government providing various tools for assistance. The online service will save any tax return elements already started, allow individuals to check their details, view returns and calculate a tax bill. For those filing their returns online the bill can be viewed in the “view your calculation” section. The bill itself can take up to 72 hours to be generated. The deadline for the tax return is 11:59pm tonight.
The bill will include the tax owed for the previous tax year. This is called a “balancing payment”, if the total is more than £1,000 than the bill will usually include an additional payment towards the following year’s bill, known as a “payment on account”.
If any payments on account were made in the previous tax year than they will need to be deducted from the current calculation.
There are multiple methods of paying the tax bill but for those who need to complete it today there are only a few options that will have it done on time.
The first account is called “HMRC Cumbernauld” and it’s sort code is 08 32 10, the account number is 12001039. The second account is called “HMRC Shipley” and it’s sort code is 08 32 10, the account number is 12001020.
If payment is being done through a debit or corporate credit card it should be done online.Important things to note are that there’s a fee if payment is done through a corporate credit card, which is not refundable.
It is currently not possible to pay with a personal credit card. HMRC will accept this payment on the date it is made and not the date it reaches their account. This will remain the case even if the payment is delayed for any reason.
The final option for ensuring payment is completed on the same day is by paying via a bank or building society. Although, this method is only an option for those who still receive paper statements from HMRC and have the paying-in slip they provided.
Online payment services are likely to be the easiest to use but it is worth noting that they may be slow during busier times. It is possible to check if there are any problems with the online services through the government website.
It is worth getting the tax returns completed on time as there can be hefty fines for those who are late. There is a £100 penalty for tax returns up to three months late. If the payment is delayed beyond this they’ll be even more to pay. There will also be charged interest on late payments. If the bill is for a partnership tax return and it is late, than all of the partners can be charged.
There is an appeal procedure against penalties if there are reasonable excuses for lateness. The government will provide individuals with instructions for appealing with the fine itself.
If an appeal is launched, an HMRC officer who was not previously involved with the penalty decision will carry out a review of the case. Appeals must be requested within 30 days of the date of the penalty notice, if it is accepted the penalty can be amended or cancelled entirely.
For anyone who feels that they cannot pay the tax bill on time they should contact HMRC as soon as possible. There may be an option to set up a payment plan to pay in instalments. Although, the government makes clear that there’s criteria that needs to be met for this to be an option.
For a payment plan to be set up an individual will owe no more than £10,000, have no other tax debts or have no other existing HMRC payment plans. The government makes it clear that they intend payment plans to be a one-off option.