Personal Tax Deadlines – How And What To Pay

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Self-Assessment deadline is fast approaching

Andrew Bruce | Towers + Gornall

Time is running out for millions of taxpayers to file their online Self-Assessment tax returns by the end of January 2018. ACT NOW to avoid a £100 fine for missing the deadline – especially if you’re filing online for the first time, as it could take up to 10 days for first-time filers to receive an activation code.


The deadline for filing your online Self-Assessment tax return for the tax year ending 5th April 2017 (2016/17) is midnight on Wednesday 31 January 2018.

Any taxes due for this tax year, together with any payments on account due for the 2017/18 tax year, are payable by this date.

As such, existing clients of Towers + Gornall, if they have not done so already, need to ensure they send us their records as soon as possible. We will always endeavour (within reason) to meet the filing deadline on your behalf.

If you are not already a client and require advice or assistance in calculating and filing your tax return, please do get in touch.

Paying My Tax

Tax payers used to receive a HMRC statement with an attached paying-in slip. These served as useful reminders for all taxpayers of what their tax liabilities are and as a prompt to pay them.

HMRC have stopped this service, so instead please make use of the following guide which describes how the payable amount is calculated and the various payment methods you can use to ensure HMRC receives it within the deadline.

What Am I Paying?

Most clients who had a personal tax bill for the tax year to 5th April 2016 (2015/16) not less than £1,000 will have had to make 2 payments on account during 2017 – the first by the 31st January deadline and the second prior to the 31 July deadline, in respect of their 2016/17 income. What becomes payable now (by 31st January 2018) is the balance due on the 2016/17 tax return + the first payment on account in respect of their 2017/18 income.

These payments on account are each generally 1/2 the total tax due from the previous tax year, however they can be adjusted if you think that your income for the new tax year (2017/18) will have changed significantly. This may be due to an expected drop in profits or a change in circumstances – a valid reason for changing payments on account must be given in any case.

Similarly, if in the previous tax year at least 80% of your tax was deducted at source (i.e. via your employment), then no payments on account will be required.

When we prepared your tax returns we let you know exactly what is payable and when, however if you need a reminder please do not hesitate to get in touch.

Deadlines

As previously stated the tax deadlines are as follows:

  • 31st January 2018 – for the balance due on the 2016/17 tax year + the 1st payment on account for the 2017/18 tax year
  • 31st July 2018 – for the 2nd payment on account for the 2017/18 tax year

These dates are when HMRC expects to have received your funds by. Therefore you will need to leave an appropriate amount of time for your funds to reach HMRC and, as the following guide stipulates, this depends on how you intend to pay your bill.

Same or next day:

3 working days:

5 working days:

  • Direct Debit (if you haven’t set one up with HMRC before)

Further information about ways to pay can be found on the HMRC website by following the above links.

Notes:

  1. You will not be able to pay using a personal credit card from 13 January 2018 onwards.
  2. You will need a paying-in slip from HMRC to pay at a bank, building society or at the Post Office. However, as HMRC are no longer issuing them, you will need to request and print on for yourself using the following link.

Please ensure you have the necessary information in order to complete, such as your Unique Tax Reference (UTR), the amount payable and the due date.

If you do not have these details to hand please get in touch.

Everyone at Towers + Gornall would like to wish you all a very Merry Christmas and a Happy New Year. We would like to take this opportunity to let you know that it is not too late to order one of our 2018 charity calendars. All proceeds are donated to local charities in partnership with Big Bill’s Pig Club. Please give us a ring on 01995 600600, pop by the office or visit our Just Giving page.

 

 

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