Self Assessment Late Fees

Taxpayer2025

I have been calculating and paying my Self Assessment Tax Form every year in my Christmas holidays, so approx. last week in December. This has been going on for 10 years. I have never had any fines. This year I've gone to calculate and pay the 2023/2024 assessment and I have 2 late payment fines. I can't work out why as I've always paid about a month early. Does anyone know why this might have happened, and what I've done wrong?

TheSpectator

Without seeing your Self Assessment statement of account it's virtually impossible to say.

Taxpayer2025

TheSpectator said:

Without seeing your Self Assessment statement of account it's virtually impossible to say.

I've just read on another site it may be because I didn't pay my bill in 2 payments. I still don't understand as it's not late.

Hoenir

Installments of tax are due by 31st January and 31st July. 

DRS1

Taxpayer2025 said:

TheSpectator said:

Without seeing your Self Assessment statement of account it's virtually impossible to say.

I've just read on another site it may be because I didn't pay my bill in 2 payments. I still don't understand as it's not late.

Usually with self assessment you pay the tax due on 31 January but you also pay two Payments on Account on 31 January and 31 July which are then credited against the tax due the next 31 January.  Is that how you have been doing it?

Taxpayer2025

DRS1 said:

Taxpayer2025 said:

TheSpectator said:

Without seeing your Self Assessment statement of account it's virtually impossible to say.

I've just read on another site it may be because I didn't pay my bill in 2 payments. I still don't understand as it's not late.

Usually with self assessment you pay the tax due on 31 January but you also pay two Payments on Account on 31 January and 31 July which are then credited against the tax due the next 31 January.  Is that how you have been doing it?

No, I have always paid the full amount at the end of December. Have I accidently opted myself into something? Can I opt out and continue as I was? This is the first time I've had them.

[Deleted User]

Taxpayer2025 said:

DRS1 said:

Taxpayer2025 said:

TheSpectator said:

Without seeing your Self Assessment statement of account it's virtually impossible to say.

I've just read on another site it may be because I didn't pay my bill in 2 payments. I still don't understand as it's not late.

Usually with self assessment you pay the tax due on 31 January but you also pay two Payments on Account on 31 January and 31 July which are then credited against the tax due the next 31 January.  Is that how you have been doing it?

No, I have always paid the full amount at the end of December. Have I accidently opted myself into something? Can I opt out and continue as I was? This is the first time I've had them.

You need to look at your statement of account. 

Perhaps you were required to make payments on account for 2023/24 in January and July 2024 but didn’t and paid the full liability in December 2024. 

Perhaps your return submission date is after 31st January 2024. 

Or perhaps something else…….

Taxpayer2025

[Deleted User] said:

Taxpayer2025 said:

DRS1 said:

Taxpayer2025 said:

TheSpectator said:

Without seeing your Self Assessment statement of account it's virtually impossible to say.

I've just read on another site it may be because I didn't pay my bill in 2 payments. I still don't understand as it's not late.

Usually with self assessment you pay the tax due on 31 January but you also pay two Payments on Account on 31 January and 31 July which are then credited against the tax due the next 31 January.  Is that how you have been doing it?

No, I have always paid the full amount at the end of December. Have I accidently opted myself into something? Can I opt out and continue as I was? This is the first time I've had them.

You need to look at your statement of account. 

Perhaps you were required to make payments on account for 2023/24 in January and July 2024 but didn’t and paid the full liability in December 2024. 

Perhaps your return submission date is after 31st January 2024. 

Or perhaps something else…….

All I can tell you for certain is that it has never been late, I have always paid by the end of December. I have always paid in one lump sum. It looks like they wanted an advance payment which I didn't do because I have never done that before. I guess the rules around tax have changed and I haven't noticed. Which is all on me, I understand that. Doesn't seem fair though. Thanks for all your help, it's the first time of posting anything.

saajan_12

How much tax did you have due upon submission for the last couple of years? 

If you have a reasonable amount of tax owed outside of PAYE when you submit in Dec / Jen, then that's effectively 20 months after the start and 8 months after the end of the tax year. To combat that loss for HMRC, they require a partial payment to be made in Jan and a second part in July during the relevant tax year, based on prior years. Then when you submit, everything gets totalled and any excess / shortfall gets settled then. 

This isn't an option to opt in or out, its mandatory once HMRC ask for the payment on account. If you failed to pay this, then you'd now owe the interest (and potentially late penalties) on that amount. 

DRS1

Taxpayer2025 said:

DRS1 said:

Taxpayer2025 said:

TheSpectator said:

Without seeing your Self Assessment statement of account it's virtually impossible to say.

I've just read on another site it may be because I didn't pay my bill in 2 payments. I still don't understand as it's not late.

Usually with self assessment you pay the tax due on 31 January but you also pay two Payments on Account on 31 January and 31 July which are then credited against the tax due the next 31 January.  Is that how you have been doing it?

No, I have always paid the full amount at the end of December. Have I accidently opted myself into something? Can I opt out and continue as I was? This is the first time I've had them.

I think there is a threshold (£1000?) where they do not ask you to pay the Payments on Account.  Maybe you used to be below that and then went over it?  But you should have had a Self Assessment Statement asking you to pay in January and July 2024.

eskbanker

Taxpayer2025 said:
I guess the rules around tax have changed and I haven't noticed. Which is all on me, I understand that. Doesn't seem fair though.

The rules are unlikely to have changed, but perhaps your income tax liability has crossed a threshold, or the like, but if you're looking for something more than a guess then it would be worth sharing more detail about what your statement says (and how it differs from previous ones).