Have you paid your tax liability for the year ended 5 April 2023?
This a reminder that any unpaid Self-Assessment tax for the year ended 5 April 2023 is due by 31 January 2024. If your total liability was over £1,000, the amount due will also include a payment on account towards next year’s tax liability.
If you haven’t already made your payment, the deadline to note is 31 January to avoid penalties and interest.
How do I pay?
To pay your Self-Assessment Tax bill you can go to your own Government Gateway account or go to the GOV.UK self-assessment section on their website and follow the instructions
How much do I owe?
If we have already completed your tax return for the year ended 5 April 2023, you should have already been informed of the amount due by your accountant. You can also log onto your own Government Gateway to check all of your personal tax information.
If you don’t already have one, you can set up a government gateway online.
What if I can’t pay?
If you think you may struggle to pay your tax liability, you should contact HMRC before 31 January to discuss your situation and the options available to you. More information can be found on the HMRC website regarding difficulties in paying. Alternatively, you can call HMRC on 0300 200 3835.
What if I’ve not earned as much this year? Do I still have to pay on account for next year as well?
By 31 January you are required to pay any liability due for the tax year to 5 April 2023 and, if your total liability is over £1,000, you also make a payment on account towards next year’s tax liability.
This is calculated on the basis that your income will be the same next year. Thereby 50% will be due on 31 January with this year’s liability and the other 50% due by 31 July. Any balancing payments (if you’ve earned more) are then due by 31 January the following year or any refunds can be claimed once the return has been submitted (if you’ve earned less).
If you believe that you are earning significantly less in the current tax year (and therefore your tax liability will be less), get in touch with your accountant and discuss reducing your payment on account for next year.