Income tax
If you pay tax on your earnings or pensions
through Pay As You Earn (PAYE), your employer
or pension provider will deduct tax on behalf
of HM Revenue & Customs (HMRC). In this case,
you won't usually need to complete a tax return.
If you have more complicated tax affairs, you
may need to complete a self assessment tax return.
You will always need to complete a tax return
if you are self-employed, a company director
or a trustee, or if you have foreign income.
Such returns are completed by around nine million
people in the UK each year.
Under self assessment, you or your accountant
completes an online or paper tax return to tell
HMRC about your income and capital gains or to
claim tax allowances or reliefs against your
tax bill. HMRC uses the figures on the tax return
to work out your tax bill, or you or your accountant
can work it out yourself.
How to pay: If you receive
a tax return (or notice to file if you file online)
by previous 31 October, you must pay HMRC the
balance of any tax you owe by the following 31
January.
This is also the date by which you may be asked
to make any first “payment on account” (a
payment made during the year based on tax owed
for the previous tax year) for the current tax
year. If you are due to make payments on
account, the deadline for making a second payment
on account is 31 July.
If you received your tax return or notice to
file after 31 October, you must complete and
return it to HMRC within three months of receipt.
As a rule you then have 30 days from the date
on the request for payment. If your payments,
including payment for penalties, are late you
will be charged interest.
Seeking professional advice is a wise step to
ensuring that your financial affairs are as tax-efficient
as possible.
There are numerous ways to pay income tax owed
to HMRC, including Bacs, cheque, debit card or
credit card, direct debit and internet banking.
For more information, visit http://www.hmrc.gov.uk/sa/index.htm
To find out more about how we can help you,
please contact us.
