The deadline to submit tax returns and pay your dues is midnight on January 31 (Image: GETTY)
Those who fear they may not be able to meet their Self Assessment tax payment by the deadline tonight could find a lifeline. Provided they’ve met other criteria, they might be eligible to establish a payment plan with online.
Self-Assessment tax returns must submitted and paid by midnight, January 31.
From tomorrow, a £100 penalty will automatically apply and repayment will begin to be added onto the outstanding tax.
Even if individuals can’t afford to pay their full tax bill tonight, the department has urged them to take action rather than simply let the deadline pass.
If you’re unable to pay your dues, advises contacting them as soon as possible. You may be able to set up a payment plan which will spread the cost over time and avoid penalty fees.
This is known as a Time to Pay arrangement. To arrange this, you’ll need the relevant reference number for the tax you can’t pay, such as your unique tax reference number, as well as your UK bank account details where you’re authorised to set up a Direct Debit.
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You’ll also need details of any previous tax payments you may have missed.
If you find yourself owing tax on your Self-Assessment, offers the option to set up a payment plan online, but there are certain criteria that need to be met:
- Your tax return must be filed already
- You owe no more than £30,000
- It is within 50 days of the payment deadline
- You have no other payment plans or outstanding debts with
When arranging the payment plan, will inquire about your income and expenditures. Each installment amount considers the remaining funds after necessary expenses like rent and fixed outgoings such as subscriptions.
According to the website, “You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe. You can also agree to pay more if you want.”
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It’s important to note that payment plans can vary in length, with no set end date, and interest continues to accrue on late taxes. If your financial situation changes, or if you face another tax bill you’re unable to pay, it’s advisable to contact who may adjust the existing plan or incorporate the new debt into your repayments.
Missing a payment might prompt to try to reorganise or renegotiate the plan.
The system has its peculiarities; for instance, if doubts your long-term repayment capacity, or if you cannot agree with them on a payment plan, they may request the full amount to be paid immediately.
However, if you fail to contact or refuse to pay your tax bill or payments on your plan, the department may resort to sending a debt collection agency or deducting it directly from your wages, pension or bank account. In more extreme cases, they may have the power to seize items you own and sell them until your debts are cleared, with additional costs such as auction fees also added to your debt.
may take you to court, close your business if it’s a business tax that’s overdue, or declare you bankrupt. You cannot appeal against a decision by but you can lodge a complaint against the department.
For individuals facing these severe situations, in England and Wales can provide information on debt management and where to seek help. Scotland Debt Solutions in Scotland and Advice NI in Northern Ireland may also be able to assist.