Self assessment DD payment plan

gavsaint79

Hi, need some advice please if anyone can help! 

I have been self employed for the last 6 years (a side job to my employed work) and set up a payment plan for my tax after I was introduced to 'payments on account', my monthly direct debit was set up to run until Dec 2023 as far as I was aware, but I have just received a letter from HMRC saying the balance is due buy the end of July 2023.  I am now freaking out because there is no way I can conjure up £1700 in 6 weeks, and that is why I set up the direct debit payments.  I have tried to call HMRC but just get a message saying the enquiry line is closed until September, and the digital helper on the gov.uk website is less than useless in this instance.

Do I just keep going with the direct debit payments or will I get fined for overdue payment?  I am very confused as I thought the payment plan was meant to spread your payments over the course of the year at the expense of some interest

Dazed_and_C0nfused

gavsaint79 said:

Hi, need some advice please if anyone can help! 

I have been self employed for the last 6 years (a side job to my employed work) and set up a payment plan for my tax after I was introduced to 'payments on account', my monthly direct debit was set up to run until Dec 2023 as far as I was aware, but I have just received a letter from HMRC saying the balance is due buy the end of July 2023.  I am now freaking out because there is no way I can conjure up £1700 in 6 weeks, and that is why I set up the direct debit payments.  I have tried to call HMRC but just get a message saying the enquiry line is closed until September, and the digital helper on the gov.uk website is less than useless in this instance.

Do I just keep going with the direct debit payments or will I get fined for overdue payment?  I am very confused as I thought the payment plan was meant to spread your payments over the course of the year at the expense of some interest

You can be "fined" for late payment of POA but only if it remains unpaid by the end of February 2024.  Interest will be charged on anything paid after 31 July 2023.

What charges does your DD cover?

It might simply be a standard statement which doesn't factor in the arrangement you currently have?

gavsaint79

Thanks for the response, as far as I am aware the DD covers my tax bill for 21/22 and the payment on account for 22/23, minus the lump sum I paid at the beginning of this year.  The total I have left to pay does add up to the 7 DD payments I have remaining for the year, but the instruction to pay by the end of July this year has thrown me.  The statement shows my direct debit payments to date so it at least acknowledges I am on a payment plan.