Don’t forget the July Income Tax Payment

Well, the 31st of July is fast approaching. Not long to go now. And you know what that means?

No?

Oh, well, for those people that have to make a payment on account through their tax return for last year, then that is the 31st of July deadline. So you need to think quick sharpish, find out your paperwork, have a look at your online account and see how much you owe HMRC.

The 31st of January might fall on a weekend. So what does that mean? Well, it means you need to get your payment to HMRC by end of banking day on the Friday. What’s a banking day? Oh, I wish I was young enough not to know that. But the banking day is when the banks effectively close off transactions for that day. So you need to make sure if the 31st July falls on a Saturday or Sunday, you make the payment by 3:30 PM on the Friday.

If you don’t make the deadline, well, that’s fine. However, HMRC will charge you interest and they will also charge you late payment penalties. Yes, more of those nasty penalties can come and bite you in the rear. So those of you unfortunate enough or lucky enough, depending on how you look at it, to need to make a payment on account, make sure you get it done and it has to reach HMRC by the close of banking day on the last working day before the 31st of July.

There are other things on the knowledge base that can tell you and guide you to show you how much you owe HMRC (https://performanceaccountancy.co.uk/knowledgebase/how-much-do-i-owe-hmrc/) and also how to pay HMRC (https://performanceaccountancy.co.uk/knowledgebase/how-to-pay-your-self-assessment-tax-return) . There are various different methods. Bank transfer is normally the best way, or through your own online government gateway.

So good luck, everybody. Hope it all works out okay. And for those of you that have already done your tax return for this current year, you may find that your payment on account has changed from when you did the previous tax return. It will never go up, but it might go down depending on your level of income.

Just to repeat, if you need to make the second payment on account, then the 31 st July is that date (or the Friday prior if the weekend).

Best go and pay mine. Now – where is that passcode.

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