‘Payments on account’ deadline reminder

Businesses, landlords and self-employed people are required to report income and expenses to HMRC through a self-assessment tax return by the end of the month.

The second annual deadline for filing advance payments towards your self-assessment tax bill for the previous financial year is due on 31 July 2017.

Known as ‘payments on account’, these take place every 6 months – on 31 January and 31 July. Each payment is half your previous year’s tax bill.

If you’re self-employed, this includes class 4 national insurance contributions.

If already registered, you can check on any outstanding payments through your online account.

Payment is required if your tax bill was more than £1,000. Payment is exempt if you've paid more than 80% of all the taxed owe.

Paying your bill

There are several ways to send your payment on account to HMRC. Some of these include:

Debit or credit card

Payment can be done online through either debit or credit card. Remember to use your 10-digit unique taxpayers’ reference (UTR) number followed by ‘K' in your payment reference. You can find this via your online account or on your paying-in slip if you currently get paper statements.

Cheque by post

If you're sending a payment by cheque you can post it directly to HMRC. The cheque needs to be payable to HMRC only, followed by your UTR number.

Postal payments normally take 3 working days.

Online telephone & banking

Payment can be sent via faster payments, CHAPs or Bacs. Your tax bill will reveal which account to pay into. Details can be found on the HMRC website.

Remember to have your UTR number which you can access from your online account.

Late payments

Failing to pay your tax bill before or on 31 July 2017 will incur interest from when the payment is due.

The following interest rate for late payments applied to main taxes is 2.75%.

However, interest charges will vary so it is important to check current rates on the HMRC website.

Talk to us to discuss self-assessment.