For many people, 31st July signifies another payment to HMRC – it’s called a “payment on account” towards your 2017/18 tax liabilities and was calculated based on your 16/17 tax return. If your bill is rather large, then did you know that there are various options for you to consider:
If you think your 17/18 tax bill might be lower than it was in 16/17 then file your 17/18 tax return now! This will bring down the amount that you’d have to pay on the 31st July and you may even get a refund!
Second option – Time-to-pay option (HMRC tend not to shout about this or share it)……if you can’t afford to pay your tax bill in one go, HMRC may agree to payment by instalments –
- Although tax should normally be paid when it falls due, HMRC may allow you to pay your tax over a period of weeks or months. Only in exceptional circumstances will HMRC consider giving you more than 12 months.
- Interest will be added, although the amount involved may be small and in actual fact, this option could be cheaper than getting an external loan to pay off your tax bill.
- Be aware: HMRC may want to know why you can’t pay the debt immediately and in full and what steps you have taken to try to find the funds. You may be asked a lot of personal questions. For example, our clients in the past have been asked what other members of the family earned, what assets they can sell, how much they spent on holidays etc.
- If that doesn’t put you off, then make the call to them on 0300 200 3835, have your UTR ready and good luck!
If you are ready to pay in full, there here are the ways you can make payment to HMRC – remember to accompany it with your payment reference which is your UTR followed by the letter “K”.
LeeP – making your money go further.