31 July: Self-assessment payment reminder
13th June 2023
The deadline for paying your second payment on account towards the 2022/23 tax year is 31 July 2023.
Paying your tax bill
You can make weekly or monthly payments towards your bill, if you prefer.
Pay your Self Assessment tax bill: Pay weekly or monthly – GOV.UK (www.gov.uk)
You can get help if you cannot pay your tax bill on time.
If you cannot pay your tax bill on time: Overview – GOV.UK (www.gov.uk)
Ways to pay
Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You’ll be charged interest and may have to pay a penalty if your payment is late.
The time you need to allow depends on how you pay:
Same or next day
- through your online bank account
- online or telephone banking (Faster Payments)
- CHAPS
- by debit or corporate credit card online
- at your bank or building society
You need a paying-in slip from HMRC to pay at a bank or building society.
3 working days
- Bacs
- Direct Debit (if you’ve set one up with HMRC before)
- by cheque through the post
5 working days
Direct Debit (if you have not set one up with HMRC before)
If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before (unless you’re paying by Faster Payments or by debit or credit card).
Reducing what you pay
The amount payable is automatically calculated as half of the total tax liability for the previous tax year, assuming that was greater than £1,000 and less than 80% tax was collected at source from income.
For those who believe their tax will be lower in 2022/23 than 2021/22, due to lower income levels, higher tax reliefs claimed or more tax collected at source, there is an opportunity to reduce the July tax payment. If this is relevant to you this reduction can be achieved by either:
- Submitting your 2023 tax return, which shows lower tax due, by 31 July,
- Making an online election to reduce the payment on account, or
- Submitting an SA303 election to HMRC.
In certain circumstances, actions can still be taken after the 5 April 2023 tax year end that will result in carry-back claims which can be used to reduce the July tax payment. These include:
- Making charitable donations,
- Taking relief for the following year’s trading loss,
- Crystallising a capital loss on subscriber shares,
- Making EIS or SEIS investments.
Need some advice or guidance?
Get in touch with your local Whitings Office today.
Disclaimer - All information in this post was correct at time of writing.
