HM Revenue & Customs (HMRC) has issued a critical reminder to millions of Self Assessment taxpayers, highlighting that they have just 30 days left to meet the July 31 deadline for their second Payment on Account. This payment is crucial for self-employed individuals, landlords, and others who file annual tax returns, as missing it could lead to arrears and interest charges on outstanding balances.
Payments on Account are advance contributions towards the next tax bill, typically calculated as half of the previous year’s tax liability. Taxpayers who owed more than £1,000 last year and whose tax was not primarily collected through PAYE are generally required to make these payments. However, those anticipating a lower income can apply to reduce their payments, though caution is advised to avoid potential interest charges.
HMRC offers various payment methods, including its app, online banking, and payment plans that allow for spreading costs over time. The app has gained popularity, with nearly two million users benefiting from its features, such as payment tracking and deadline reminders.
In addition to the payment deadline, HMRC is implementing changes that will affect Self Assessment taxpayers. From mid-July, around 300,000 individuals paying the High Income Child Benefit Charge will have their information automatically integrated into their online tax returns, streamlining the process. Furthermore, new regulations require sole traders and landlords with incomes above £50,000 to comply with Making Tax Digital for Income Tax, with the first quarterly submission due by August 7.
Source: GB News
