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There are several ways that you can pay what you owe for Self Assessment, including through Direct Debit, by making a transfer, paying with a card, or even through your tax code if you work for an employer.
HMRC will calculate your bill once you submit your Self Assessment tax return. They will accept payments:
If you make a payment directly to HMRC, remember to include your UTR number as a reference so they know who to allocate it to!
You might be able to pay your Self Assessment tax bill through your tax code if you work for an employer who deducts tax from your earnings under PAYE.
This means that you can spread your tax bill across twelve months, as long as you meet the criteria to be eligible. Just be aware that this means your tax code will change (and so your employer will be aware of the change and may question it!).
If your tax bill for Self Assessment is more than £1,000 then you’ll usually be asked to make advance payments towards the following year’s tax bill – known as making payments on account. The first instalment will be half of the current year’s bill and is due at the same time, so it can be a bit of a shock if you’re not prepared!
Unless you arrange to have the tax which you owe collected through your tax code, you’ll need to pay your 2023/24 Self Assessment tax bill and any payments on account by midnight on 31st January 2025 in order to avoid late-payment penalties.
Depending on how much you owe and when it was due, you may be able to make a Time to Pay agreement if you’re having trouble paying your Self Assessment tax bill. It’s better to contact HMRC as soon as possible so you can discuss the best way to make affordable re-payments.
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