Self-Assessment: payment deadline questio

bubbleoflife_2

I'll be submitting my online self-assessment shortly but this year I have to pay tax and I've just noticed that the deadline is the same as the self-assess :eek: Does that mean that if I pay by bank transfer tonight, being that it's Friday and 3-5 working days are needed, I will incur a £100 fine?

P.S. Up untill last year my income was so low (it's still low but a little better than last year, gladly!) that I did not need to pay tax.

bridgend_girl

my understanding is the penalty is for non-submission of the return. If you submitt form by midnight 31st jan then no penalty is payable. Beware that the site has been known to crash in the last few hours due to demand.

If you do not pay the tax due then interest will accrue on the outstanding balance - should be minimal if you pay on 31st jan,

Mikeyorks

It's always been the same date.

You will be OK (just) paying by online transfer from your Bank. But I would suggest you instead pay on your Debit Card via the Billpay link HMRC provide. That way you can leave it until the 30th / 31st to pay.

The best way (via the SA online) is to pay by 'one off' Direct Debit. But it takes 5 days to set up the Mandate if you haven't used it before .... so too late for this year.

bubbleoflife_2

Mikeyorks wrote: »

It's always been the same date.

You will be OK (just) paying by online transfer from your Bank. But I would suggest you instead pay on your Debit Card via the Billpay link HMRC provide. That way you can leave it until the 30th / 31st to pay.

The best way (via the SA online) is to pay by 'one off' Direct Debit. But it takes 5 days to set up the Mandate if you haven't used it before .... so too late for this year.

It will have to be a bank transfer TONIGHT because I have no Debit Card for this account. Hopefully it'll be ok.

Thank you

Mikeyorks

bubbleoflife wrote: »

It will have to be a bank transfer TONIGHT because I have no Debit Card for this account. Hopefully it'll be ok.

It will really be too tight .... as a BACS payment may not leave your Bank until Monday? And HMRC accounts don't support Faster Payment.

A cheque would perversely be safer .... if it's there on Monday. HMRC don't work on days of receipt - they use Effective Date of Payment. the rules for the varied methods are here (right hand column) :-

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM201020.htm

Gas_Powered_Toothbrush

The interest on late payments is 3% annually, calculated on a daily basis. For each day you're late, you'll thus pay 0.0082% of the outstanding amount.

It's your call if that's going to be an amount you're particularly worried about.

RainMaker_2

If I pay my tax bill on Monday (31st Jan), by cheque, at a Post Office, will I incur a late payment penalty ?

Mikeyorks

RainMaker wrote: »

If I pay my tax bill on Monday (31st Jan), by cheque, at a Post Office, will I incur a late payment penalty ?

No such penalty .... they just charge daily interest. But payment over the PO counter on Monday will be construed as in time ...... provided you hand over your SA payslip with it.

(See the link in post #5)