When to pay tax due?

dutchie

I was sent a letter a while back telling me I did not need to fill in a tax return; but I filled one out online today as I have UK company dividend income that need to be declared.

When am I supposed to pay the actual tax due? Do I get 30 days from filling?

The online site doesnt make it clear. In fact at the moment it seems to suggest I have 0 to pay, even though the calculated tax return I filled out says otherwise. I presume it takes a while to update.

Cheers,
Dutchie

Anniek1969

The online self assessment you filled out online today would have been for 08/09 so if your earnings were after april 09 you don't have to declare that until next year when you fill out your self assessment for 09/10.

dutchie

Sorry if I wasnt clear. The reason I filled out a 08/09 Tax Return, even though they asked me not to, is because I had UK Company dividend income in the 08/09 tax year.

I just want to know how long I have to pay, as it's quite a bit. I understand if you were sent a request to fill out a tax return before Oct 31st 08 then you have until the 31st Jan 2010 to pay. But what about people like me? It doesnt state clearly online.

Cheers,
Dutchie

Mikeyorks

Yes ..... if you're asked (by HMRC) to file late .... you have 3 months from that date. So the catalyst to that is Oct 31st.

As you've decided to file regardless ...... your due date for any payment must be tomorrow (the 31st)? I assume you pay higher rate tax and therefore a further 22.5% is due on the dividends?

dutchie

The dividends have pushed me into the higher tax rate. This is why I had to file regardless.

Do I not get until they send me a claim for payment to pay? I thought the calculations they give you online are not an actual claim for payment?

Cheers,
Dutchie

Mikeyorks

dutchie wrote: »

Do I not get until they send me a claim for payment to pay?

No

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if you file 08-09 then, apart from the circumstances you've described where HMRC require you to file after 31/10, the due date for payment is 31st Jan.

I thought the calculations they give you online are not an actual claim for payment?

..... it's a calculation of your overall liability for the year .... so, by definition, it's a statement of what you owe based on your submitted figures? But it's not fully complete (and says so) as at that point any payments on account haven't been deducted.

Are you certain you have a liability if the calculation is showing £zero? It should be accurate as to your overall liability once you've done the submission. It just doesn't pull back payment data from the main SA system until after they've done an overnight Batch run. That's not normally done over weekends ... but this weekend may be an exception.

If you're convinced you owe something and want to pay for the deadline? Then using your Debit Card via BillPay is about the only avenue left that will get there in time. Make the payment tomorrow and it will carry the 'effective date' of the payment with it. Or you can use a Credit Card there .... but there's a fee of 1.25%

https://www.billpayment.co.uk/hmrc/scripts/index.asp

Elaine_Wilson

The money is due by 31st January in any event.

When did you notify them that you had an additional liability? The latest date used to be 5th October so that they had a chance to issue a return by the 31st October. Then if they fail to issue in time you get longer to file as Mikeyorks said.

They do not have to send you a demand. This is self assessment and it is up to you to determine and pay the correct tax by the due date. Sorry, not getting at you, just pointing out how they view it. A bit one sided I'm afraid with the taxpayer (or is it still customer) getting the worse of it.

Edit - My typing was slow. Too many tax returns left to do, that's my excuse.

dutchie

Thanks for the answers.

The calculation shows I have to pay tax, and states I have to pay by Jan 31st. But when I click on View Account->Current Position it says "You have nothing to pay."

Guess their system is a bit screwed up.

It's been a while since I had to pay anything, since the last few returns I did, I got a refund, so I didnt realise that they expect payment straight away, and I also didnt know about payment on account. I'll just have to sort my finances out and pay the interest charges until then. Dont want to pay by credit card and get hit by a 1.25% fee.

Cheers,
Dutchie

Rich_T_2

dutchie wrote: »

Thanks for the answers.

The calculation shows I have to pay tax, and states I have to pay by Jan 31st. But when I click on View Account->Current Position it says "You have nothing to pay."

Guess their system is a bit screwed up.


Dutchie

It takes awhile for the HMRC account to update once return has been submitted (few hours - couple of days).
You'll then have the option to pay via a variety of sources. Cheque, debit or credit card. If by card, HMRC use 'BillPay' which is separate from them. So, after you make payment you'll have to wait 3-4 days (in my experience) for the account to be further updated.