As the Self Assessment second payment on account for the 2021-22 tax year is due to be paid by the end of July 2022, those affected may find using a budget payment plan helpful to keep on top of tax affairs.
If you are having difficulty making your payment, HMRC’s time to pay arrangements can be accessed through HMRC's help if have difficulties paying HMRC. In addition to this, it is possible to set up a Self Assessment budget payment plan with HMRC which means that you are paying your tax in advance but has the benefit of keeping you on top of your tax affairs. This is only available if you are up to date with your tax returns.
Making weekly or monthly payments ahead of your actual liability falling due can avoid lump sum payments on 31 January and 31 July each year or, if you need to, having to arrange a time to pay arrangement. If the amount in your plan does not cover your next bill in full, you will need to pay the difference. If you’re in credit, you can request a refund. If you often find you struggle to pay your tax paying in advance, rather than using a time to pay arrangement, avoids late payment interest charges.
Our recommendation would be to let us have your papers to enable us to file your 2021-22 tax return sooner rather than later so we can clarify what tax is due and when. Filing early does not mean you will pay the tax any sooner but it gives your longer to prepare. It also means that if you are due a repayment, you will receive it sooner.
We are here to answers any questions you have about paying your tax.