Self cert- When do i need to pay bill?

rocky028

I will be sending back my tax return for my buy to let property before 31 January. If for example i owe the tax man £1000 when do i need to pay this? Do i need to pay before 31 january or do i have a period of time to pay the money i owe??

Thanks for any help

chrismac1

If it is for the 09-10 tax year end you'll normally be paying 1,000 for 09-10 and 50% - 500 - on account for 10-11, all due on 31 Jan 2011. However, on the tax return there is the opportunity to request a lower amount for 10-11 if you have good cause to think your tax bill for 10-11 will be lower than 09-10.

rocky028

I have had the property rented out for the last 2 years and this is my 1st tax return. Before anyone say it, I know i should have done one last year and i will get a fine. So i will be doing a return for 08/09 and 09/10

scragend

In that case you owe all the tax for 08/09 now (should have been paid last January), as well as a £100 late filing penalty. You will also have to pay interest and maybe a surcharge as well.

Depending on what your tax liability was for 08/09, you may already be overdue with your 09/10 tax. If your liability for 08/09 was over £1,000 then you should have paid the 09/10 tax in two instalments in January and July 2010, so those would also be overdue.

If the 08/09 liability was less than £1,000 then payments on account re. 09/10 were not required so the 09/10 liability will be due on 31.1.11 along with the first payment on account for 10/11.

chrismac1

Start saving!

chrismac1

Make sure you claim all of the allowable expenses first. Typically people spend a bit extra in the first year of renting, often enough to put them in a tax loss position. No tax to pay means no fines to pay either.