Part-payment of tax?

tyllwyd

I'm self-employed, and obviously I've got a tax bill coming up at the end of the January.

I've done a rough draft of my tax return online, so I've got a good idea of how much I owe but I want to double check the figures before I hit the button to submit it. In the meantime, I've got money sitting in my bank account waiting to pay the bill.

What I'd like to do is pay a big chunk immediately, and then pay the rest of it in a week or two when I've got the exact figure. I wondered if it confuses HMRC if you pay in more than one installment, or can their systems cope with it?

Mikeyorks

They don't do free raffles if you pay early!

More than one payment won't confuse them. But if you're paying by cheque - it means you won't have a spare payslip for the balance? And that starts to multiply the possibility of error.

The most risk free - as you have online - is to do it via a 'one off' (or two off .... if you insist on paying an early deposit!) Direct Debit. But I think the initial setting up will take 5 working days. Thereafter it's reuseable (subject to the usual proviso that DD mandates expire if unused for 13 months)

http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm#4

tyllwyd

Thanks! I'll probably pay through the BillPay system, which has worked OK in the past. But yes, it probably makes more sense to do it in one go, it's just that the money is sitting in my current account but can't be spent, which is driving me crazy!

Mikeyorks

Resist the temptation! You'll feel better for it.

The Billpay route is fine (except Santander now own it !) ...... but I'd still recommend the DD if you pay at least annually. Gives you a more certain control?