More than 7.7 million Self Assessment customers have already filed their tax return for the 2022 to 2023 tax year, but HM Revenue and Customs (HMRC) is reminding anyone who still needs to pay their tax bill should do so before the deadline on 31 January or risk facing a penalty.
Those who are unable to pay in full can check online to see if they can set up a monthly payment plan called Time to Pay. If they owe less than £30,000, they can use the affordability checker on GOV.UK to help decide the best arrangements for them. Interest will be applied to any outstanding balances from 1 February.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help Self Assessment customers meet their obligations and there is no time like the present to choose the right payment option for you. Whether you choose to pay in instalments, via the HMRC app or using online banking, search ‘pay your Self Assessment tax bill’ on GOV.UK for a full list of options.”
In addition to those who have set up an online payment plan, in December 2023, 28,794 customers used the free and secure HMRC app to pay more than £42 million in tax owed. Customers can also receive a tax refund via the app. They should include their bank account details when filing, so that if HMRC needs to make a repayment, they can do so quickly and securely.
For those who pay their current estimated tax bill via Payment on Account, the first instalment for the 2023 to 2024 tax year is due on 31 January.
A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay.
HMRC will consider a customer’s reasons for not being able to meet the deadline for completing their Self Assessment on time. Those who provide HMRC with a reasonable excuse may avoid a penalty. The penalties for late tax returns are:
There are also additional penalties for paying late – 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.
People should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.