When to pay tax?

My Mother-in-Law is a pensioner. Her only income is state pension and savings from various accounts. With the increase in savings rates she now finds that during 2023-2024 she will be liable to pay income tax. When would this have to be paid please?

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  • eskbanker
    eskbanker Posts: 29,855
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    Assuming her state pension is below £12,570, she can earn over £6K in savings interest before tax would come into play, but if she receives over £10K in interest she'd need to self-assess - how much interest is she likely to get?
  • CatieE
    CatieE Posts: 53
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    edited 10 December 2023 at 2:58PM
    It will be around £11000.
    I have looked at the HMRC site and have to say that I'm a little confused at what date payment is due.


  • Flugelhorn
    Flugelhorn Posts: 5,414
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    she can do self assessment (by the end of Jan 2025) and then they will tell her how much she owes
  • Albermarle
    Albermarle Posts: 21,103
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    CatieE said:
    It will be around £11000.
    I have looked at the HMRC site and have to say that I'm a little confused at what date payment is due.


    So she will need to fill in a self assessment tax return after the end of the tax year. It is easier to do this on line.
    If after doing that and it calculates that she owes tax ( which it looks like she will ) HMRC will then request a payment.


  • Assuming that we are talking about 2023/24 she must register for self assessment and file a tax return for that year. This can be done from April 2024 and must be submitted by 31st January 2025 when payment is also due. 

    If her liability is over £1000 she will also be required to make payments on account for 2024/25. First payment, equivalent to half her tax liability of 2023/24 is also due on 31st January 2025 with an equal payment on 31st July 2025. 

    Both payments are deductible from the final tax liability for 2024/25.
  • CatieE
    CatieE Posts: 53
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    Many thanks - you have all been so helpful and the problem is solved :smile:
  • badmemory
    badmemory Posts: 7,512
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    Not due for payment until 31st January after the end of the tax year.  So if we are talking the current tax year which ends on 5th April 24 then it will not need paying until Jan 25.  Lots of time.  Although I wouldn't leave the filing & payment until the last minute as it can get very busy.

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