November 18th, 2015

Paying Self Assessment tax through PAYE

If you, like many others, have received a Self Assessment Tax return from HMRC, you may be dreading the 31st January, as this is the deadline for filing your tax return and paying the tax you owe.  Directly right after Christmas when things are generally a bit tight.

However if you are lucky enough to be eligible you may be able to request HMRC to collect the tax you owe from your wages and/or pension.

So what do you need to do in order for this to happen?

Well…

Firstly the amount of tax you owe on your tax bill must be below £3,000

Secondly you must be under PAYE, ie an employee who receives payslips or you receive a pension.

Thirdly if you submit a paper return, it must have been submitted by 31st October, if you have not done this then you must file your tax return online by 30 December.

Therefore in order to take advantage of this payment method it is always a good idea to have completed your tax return by December so that if the tax you owe is under £3,000 you can apply for this payment method with HMRC and save yourself the cashflow issue in January.

 

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Director

Alison obtained a First class degree in Accountancy and Management at UCLAN University. She then went on to qualify as a certified accountant in 2006 and became a founder member in 2011.

Alison trained at a practice in Liverpool and, within her 10 years there, she developed as an accounts manager and obtained a varied portfolio of clients which has provided her with a range of experience in accounts, audit, VAT and taxation.
Alison specialises in giving sound jargon-free advice to a range of small and medium sized businesses.

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