If you cannot afford to pay your tax due by the 31st January you need to contact HMRC before 31st January to arrange a Time to Pay Agreement.
Tax should be paid by the due dates, being 31st January for personal taxes due, even if you receive no demand from HM Revenue & Customs. You should appreciate that if the tax is not paid by the due date, interest will accrue at the current HMRC rate of 6% (from 6 January 2023 following Bank of England interest rate increase).
Also, an additional surcharge of 5% will also be applied to any of the 2021/22 balancing tax payment which remains outstanding at 28 February 2023.
Need time to pay?
If for any reason you do not think you can pay your Tax bill on time, you can make your own time Time to Pay arrangement using your Government Gateway account, if you:
- have filed your latest tax return
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay your debt off within the next 12 months or less
Please visit https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments for more information and the link to apply.
If your tax bill is over £30,000 or you would prefer to speak to a HMRC to setup a plan, numbers to call are detailed here.
As ever if you have any questions regarding this please do not hesitate to contact us.