So you’ve filed your tax return before the due date.
Perhaps you used a fantastic accountant like our team at Dead Simple Accounting!
But quite a few of our clients then stress over how they can afford the tax especially if it involves payments on account (see our separate blog post on these).
The bad news:
- You can’t run away from your tax bill.
- HMRC will chase you if you haven’t paid on time.
- HMRC may apply interest on late payments.
The good news:
- You can set up a budget payment plan with HMRC
- You can make small, much more affordable, direct debit payments towards your tax bill.
- You can also setup a direct debit for just the January & July payments on account to clear by the due dates And once these are setup, they’ll roll forward for future years.
Remember, HMRC are on your side and they want you to be able to afford the tax payments so we fully recommend you call them up to discuss a payment plan.
All you’ll need is:
- A UK bank account
- Authority to set up a direct debit – which usually means you’re the the sole account holder
How to set up a direct debit with HMRC:
- Just log into your HMRC online account & follow the link for ‘Set Up A Direct Debit’
- More info here
How to set up a budget payment plan:
There’s concise and helpful info on HRMC’s website here
Don’t delay! It makes total sense to think about budgeting for your tax bill & the sooner the better!