How much do I owe HMRC?

How much do I owe HMRC?

This guide will answer the question, “how much do I owe HMRC?”

I often get asked the following question by my clients:

  • How much do I owe HMRC?
  • Will they send me a bill?
  • Do I get a statement?
  • How do I find out, etc.?

This very quick and easy guide will show you what you need to do.

There are three ways to find out:

  1. You might get issued a paper statement from HMRC. There is no rhyme or reason as to who gets a paper statement, or why some people get one and other people do not. I have not yet managed to find out what the criteria is! If you have a July payment on account to make, you may get a statement at the end of May/beginning of June. If you have a January payment to make, you would normally have done your tax return at the end of November and then you may get a paper statement. Again, there seems to be no pattern regarding who gets a statement and who does not, so you may need to use one of the other methods.
  2. You can go into your business tax account and find exactly how much you need to pay. Please be aware that sometimes they might say you owe, for example, £15,000. Do not panic! If you drill down a bit, you will find that it is not necessarily £15,000 you have to pay in one lump sum. They have included the July payment on account. Yes, it will need to be paid, but not straight away (and the number of clients I have had that have gone into panic mode thinking they owe way more than they do. But, hey, why should HMRC tell you otherwise? If they get their money early, that is great).
  3. Ask your accountant or your tax agent. However, please do not ask in January because you are not likely to find out.

So those are the three main ways you can find out how much you owe HMRC. Obviously, you could phone them, but by the time you have sat on the phone for 45 minutes waiting for them to answer, you might as well have tried one of these other options.

So, let us do option two first (because I feel like it).

Let us go into your online tax account. The URL is:

https://www.access.service.gov.uk/login/signin/creds

Enter your government gateway ID and password. You will have been issued with these when you first set up the account. There are various options if you have forgotten any of those, or you can ask the online services help desk to help.

So, sign in. Now, some people go into their online tax account via the personal tax account, and some people go in via the business account. So, if you go in via your personal tax account, what you will need to do is click on the business tax account as that is where the self-assessment is stored.

From there, you will be able to navigate down to the self-assessment.

I have just done a bit of a chop and paste here, and this is showing me that this person owes £3,000. That is just for the January payment.

The first method you can use was a paper statement. So, this is what a paper statement would look like, and it shows this amount this person must pay:

And they had all that amount to pay by the…well, they were late paying. So, they had bits that they should have paid by 31st January, then interest is accruing, and penalties are accruing as well.

At the bottom of that statement is a paying-in slip; you can use that at your bank to pay in, or just take the information like the reference number, and use that to pay via your online banking. There is a separate guide with regards to how to pay your self-assessment tax return.

So, a short guide to finding out how much you owe HMRC. They do not send you a bill. There is no invoice. You might get a statement, but most of the time they expect people to remember from the tax calculation if you have done your own tax return, or to go into your online account and work out what you owe from there.

So, I hope that is of help and any problems, please feel free to get in touch by email.

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