What information is included in the Self-Assessment Tax Bill, and will I be fined if I cannot pay my tax bill on time?
Filing for Self-Assessment Tax for the first time means you’ll have to use the HMRC’s online service to register for Self-Assessment. You need your UTR or Unique Taxpayer Reference (which must be activated and enrolled to access the online service) to complete the process.
Once you’ve filed for Self-Assessment Tax return, you’ll receive a bill from the HMRC. In the bill, you’ll find the ‘balancing tax payment’ or the amount of tax you owe for the previous tax year. You’ll also find a ‘payment on account’ which is an amount pertaining to additional payment that will be added to next year’s bill if your balancing payment exceeds £1,000. The Self-Assessment tax bill must be paid by midnight on January 31st and failure to pay by the said deadline will mean having to pay a penalty.
If you cannot pay on time, you have to contact the HMRC as soon as possible to avoid penalties. There are payment plans available so get in touch with HMRC and know your options right away. It’s crucial to stay on top of tax deadlines so visit this link to know how Sterling Accounting Solutions can help you out with Self-Assessment Tax.