Don’t forget: 3 days to go for tax payment deadline
Midnight on July 31 is the deadline for making your second ‘payment on account’ to HMRC.
If you are self-employed or you own a business and you think that you have to make an advance ‘payment on account’ for this current tax year then this is your last chance to pay before you receive a fine.
What is a payment on account?
‘Payments on account’ are advance payments that count towards your tax bill. Usually, you pay two each year – one on January 31 and one on July 31.
If you are self-employed then you have to pay an advance on your income tax and your Class 4 National Insurance Contributions.
Who has to pay?
You will have to make the payment on account if you are a sole trader, limited company director or partnership partner unless one of the following applies to you:
• Your previous year’s tax bill was less than £1,000
• You have already paid more than 80% of all the tax you owe (for example if your bank has already deducted interest on your savings).
How much do you have to pay?
Each payment on account (in January and July) will be half of your total tax bill the previous year.
If your total tax bill was £3,000 in 2014/15, this you will be required to pay a £1,500 payment on account before 31 July 2016.
You can pay your bill, and access other self-assessment services by following this link.
What if I have more questions?
If you still aren’t sure whether you need to pay, then you can double check by logging into the self-assessment section of the HMRC website.
Or you can always contact the Umbrella.co.uk team. Call: 0800 121 6513.