A handy guide for paying off your tax bill to HMRC
Here, chief FreeAgent accountant, and Business Advice expert, Emily Coltman, provides a useful guide to help self-employed taxpayers pay off their tax bill by HMRC’s deadline. Wednesday 31 January isn?t just the date by which you have to submit your self-assessment for the 2016/17 tax year to HMRC. It?s also the date by which you have to pay your tax bill ? so it?s important to get organised and make sure that your payment reaches HMRC before the midnight deadline. Here is a handy rundown of the main payment options that HMRC accepts, how long each type of payment takes to process and how you can use each payment method. Remember, you can no longer submit your self-assessment at the Post Office.
At your bank or building society (only an option if you still get paper statements from HMRC)
How long it takes for payment to reach HMRC: Same day (Monday-Friday only). How to pay: By paying cash or writing a cheque made payable to “HM Revenue and Customs only” followed by your Unique Taxpayer Reference (UTR), followed by the letter “K”.
How long it takes for payment to reach HMRC: Three working days. How to pay:?By writing a cheque made payable to ?HM Revenue and Customs only? followed by your Unique Taxpayer Reference (UTR) number. It should be posted along with your paying-in slip to HMRC, Direct, BX5 5BD ? no street name, city name or PO Box is required.
Emily Coltman is chief accountant to FreeAgent, provider of cloud accounting software for freelancers, micro businesses and accountants. She is passionate about helping the owners of small and growing businesses to escape their ?fear of the numbers? and she translates small business finance and tax into practical common sense speak.