More great news from HMRC for those who pay their tax via a self-assessment tax return…
If you’ve even been caught out by your tax bill, or miscalculated what you thought it might be, then you’ll know what a nasty surprise you can be in for when you file your self-assessment tax return and see a figure you weren’t expecting. It happens to the best of us!
But we have good news! HRMC has launched a new system to help you budget for your self-assessment tax payments. You can now set up weekly or monthly direct debit payments to ensure you avoid any future nasty surprises.
You can choose the amount of your direct debit payment and even pause your budget payment plan for up to 6 months should you need to.
If, once your tax bill has been calculated, you still owe more, you can make a separate payment. If you have overpaid via your budget payment plan, then you can request a refund from the credit left on your account. We’re loving the simplicity of this system!
You can find out which budget plan is best for you by completing this questionnaire on the HMRC website - https://www.tax.service.gov.uk/guidance/check-if-you-can-set-up-regular-payments-to-pay-your-self-assessment/self-assessment-payments
You’re then ready to set up your payment plan by logging in to your Government Gateway account. This is something we can’t do on your behalf, but we’re happy to provide any help and support if required.
We think this is a great addition to HMRC’s self-assessment tax system and can see many people benefitting from this form of budgeting.
If you have any queries about any aspects of your self-assessment tax responsibilities, don’t hesitate to contact a member of the team.