Do you need help paying your tax?
Jan 22, 2025
Ah, tax season—a time that often brings a mix of relief and stress. If you've already submitted your tax return for the 2023/24 tax year, congratulations! Now comes the next step: ensuring you pay any taxes owed to HMRC by the 31st of January, 2025.
Missing this deadline could result in interest charges and late payment penalties, so it's crucial to stay on top of it.
But what if you're struggling to meet the payment deadline?
Don't worry; there are options available to help you manage this financial obligation without breaking the bank.
Time to Pay Arrangements
HMRC offers a 'Time to Pay' arrangement, which allows you to spread your tax bill over several instalments. You can set up this payment plan online if you meet the following criteria:
Your latest tax return is filed.
You owe £30,000 or less.
You're within 60 days of the payment deadline.
You have no other payment plans or outstanding debts with HMRC.
When setting up your plan, be prepared to provide details about your income, spending, and any savings or investments.
Setting Up by Phone
If online setup isn't an option, you can arrange your payment plan by phone. HMRC will ask about your monthly repayment capabilities, income, expenses, and assets. They may expect you to use any savings or investments to help reduce your debt.
Plan for Future Taxes
Staying ahead of your taxes can save you from future stress. Consider setting aside 30% of your income throughout the year to cover your tax obligations. This proactive approach will help you avoid surprises when tax deadlines roll around.
Remember, an accountant can be a valuable ally in navigating tax season, offering planning support and reducing the stress of the process.
Happy tax planning!
TSA
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