paying tax monthly

billozz

can anyone advise if it is possible to pay your tax on a monthly basis rather than twice a year as i do at present, i have been told you can but cant find anything relating to it on the hmrc website
thanks
bill

fengirl_2

You can pay monthly in advance - once your account is set up, it will accept payments as and when you want. However, why would you giv e HMRC your money in advance when you can get a whole 1% interest in a bank.
If you want to pay in arrears, you would need to negotiate a payment plan with the Collector who would want to see an income and expenditure statement and you would be charged interet.

Mikeyorks

It's a new(ish) facility via their recently introduced Direct Debit system .... known as a Budget Payment Plan. Details here :

http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm#2

..... only really worth it if you owe them a relatively small amount (say under £1k pa). Otherwise put the money in a savings account. They did a Mori (?) poll on it nearly 10 years ago to ascertain interest ...... but it's taken them until Dec 08 to get an online DD system established.