Festive finances: Budget for Christmas and spread the cost of tax bills | Newry News

With Christmas preparations well underway in many households, considering financial commitments may be on the agenda. So HMRC is reminding people who pay tax by self-assessment of the opportunity to spread the cost of their bill.

More than 15,000 Self Assessment customers have already set up a Time to Pay payment plan for the 2023 to 2024 tax year to help spread the cost, and there is still an opportunity to sign up for such an arrangement. 

HM Revenue and Customs (HMRC) offers these payment plans to support customers unable to pay their tax bill in full and looking to manage their tax payments over regular monthly instalments.

The online deadline to file a tax return for the 2023 to 2024 tax year and pay any tax owed is 31 January 2025.

Anyone who is unable to pay their tax bill in full, owes less than £30,000 and is eligible, can quickly and easily apply online without the need to contact HMRC directly.

Those who owe more than £30,000 are still able to apply but would need to contact HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, says, “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available.

“Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”

Taxpayers must file their Self Assessment tax return before setting up a Time to Pay arrangement. 

There are many ways in which people can pay their Self-assessment tax bill, including paying through the free and secure HMRC app or online at GOV.UK.

A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s self-assessment tax bill and the different ways to pay.

HMRC is encouraging people to be prepared and have all the information they need ready to file their Self Assessment tax returns early, so they can avoid any last-minute stress and know what they owe sooner.

HMRC has a range of online help and support and YouTube videos to assist anyone completing their return, including first-time filers.

Customers setting up a time-to-pay arrangement need to budget accordingly to ensure that regular monthly payments can be made. Any missed payment will incur interest as well as a penalty.

HMRC recommends that anyone who regularly sell goods or provides a service through an online platform to find out more about selling online and paying taxes.

The information on GOV.UK will help them decide if their activity should be treated as a trade and if they need to complete a self-assessment tax return.

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing their personal or financial details, people should search ‘HMRC tax scams’ on GOV.UK to access a checklist to help them decide if the contact they have received is a scam  

People should never share their HMRC login information with anyone. Someone could use them to steal from them or claim benefits or a refund in their name.

HMRC is also reminding anyone who received a Simple Assessment letter that the deadline to pay any tax owed is 31 January 2025. Simple Assessment customers do not need to register and complete a tax return.

Simple Assessment letters were issued to those who have unpaid Income Tax from the 2023 to 2024 tax year that cannot be collected via Pay as You Earn (PAYE) – by an employer or pension provider.

Customers who receive a Simple Assessment on or after 31 October 2024 for tax owed during the 2023 to 2024 tax year will have 3 months from the date of their assessment to pay their tax bill.

Both Self Assessment and Simple Assessment payments can be made in full, or in smaller amounts if the balance is cleared before the deadline. Payments can be made on GOV.UK or through the HMRC app. 

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Posted by NewryTimes News on Dec 19 2024. Filed under Business, Community. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry