Nearly 45,000 tax payers set up payment plan

by Susie Hughes at 10:52 17/01/24 (News on Business)

As the deadline to submit Self Assessment tax returns looms, nearly 44,800 people have sorted their tax bills totalling almost £148 million, by setting up a payment plan.

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 January 31, 2024 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 February 1, 2024. Myrtle Lloyd from HMRC, 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.” Advertisement 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 January 31. 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. Penalties 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: an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time; after three months, additional daily penalties of £10 per day, up to a maximum of £900; after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; after 12 months, another five per cent or £300 charge, whichever is greater. There are also additional penalties for paying late - five per cent of the tax unpaid at 30 days, six months and 12 months. Interest will also be charged on any tax paid late. HMRC advises that people should also 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. Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2024

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