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Self Assessment 31 July Payment

Many taxpayers who file a self assessment tax return will need to make a payment to HMRC by 31 July 2014.

If you filed a Tax Return for the tax year ending 5 April 2013 you may well need to make a payment of income tax to HMRC by 31 July 2014. Income tax is very often payable in instalments and these instalments are known as payments on account.  This generally applies where your tax due for the year exceeds £1,000 or represents 80% of your total liability or more.

The first instalment was due on 31 January 2014 and the second is due by the end of July.

Each payment is half of your previous tax year's bill.  So if you paid £5,000 tax in 2012/13 you'd have owed £2,500 on 31 January and the same amount by 31 July.

If you miss the July deadline you will pay interest on the outstanding balance until paid, but no more, as long as the final bill is settled by 31 January next year.

There is scope to reduce the payments on account if your circumstances have changed, if for example your profits have decreased or your business has ceased.

Please contact your nearest branch if you need further help