Millions of taxpayers across the UK are being reminded to settle their second self-assessment tax payment by 31 July 2024. HM Revenue & Customs (HMRC) has issued a warning to avoid late payment penalties, which can add unnecessary costs to your bill.
What You Need to Know
The self-assessment system requires individuals to make two advance payments towards their annual tax bill:
- First payment: Due by 31 January (covering 50% of the previous year’s liability).
- Second payment: Due by 31 July (covering the remaining 50%).
If you miss the deadline, HMRC will impose an initial £100 fine, followed by additional charges for prolonged delays.
Who Needs to Pay?
This applies to:
- Self-employed workers.
- Landlords receiving rental income.
- Those with significant untaxed earnings (e.g., savings, investments, or dividends).
How to Pay
HMRC offers multiple payment options:
- Online: Via bank transfer or debit card.
- Direct Debit: Set up in advance for automatic payments.
- Post: Cheque payments (must arrive by the deadline).
Ensure you use the correct HMRC reference number to avoid processing delays.
What If You Can’t Pay?
If you’re struggling financially, contact HMRC immediately to discuss a Time to Pay arrangement. This allows you to spread payments over a longer period, reducing immediate pressure.
Ignoring the deadline will only worsen the situation with escalating penalties and potential legal action.
