Haven’t paid your tax bill? No problem. You have until January 31st to pay, and our team is here to help. In this guide, we’ll walk you through a step-by-step process of how to pay your tax bill with HMRC, making it easier to stay compliant with tax regulations.
For Our Clients: Paying Your Tax Bill
If you’re already a client of Angel Bookkeeping and Payroll Services and we complete your tax returns, we can also help you pay your tax bill. We’ll let you know how much you owe, the reference number you need, and the correct account number and sort code for your payment. We’ll also be happy to talk you through the process, taking the stress out of paying your tax.
How to Pay Your Tax Bill
Paying your HMRC tax bill can be done by cheque in the post, but we’d recommend that businesses pay online. It’s easier, more secure, and helps you maintain clear digital records of your tax payments.
Follow these steps to pay your tax through the HMRC website.
Step 1: Sign in to HMRC Online Services
If you’ve submitted your tax return electronically, you’ll have an account with HMRC. To pay your tax bill, you’ll need to sign in to your account on the HMRC website. You can choose to sign in using either:
- Your Government Gateway information
- Your GOV.UK One Login
You may also need to enter an Access Code to verify your identity, which is usually sent to your phone number or email address.
If you forget any details, such as your One Login email address or your Government Gateway ID, head to HMRC’s ‘problems signing in’ section beneath the sign-in boxes. This’ll give you options to recover your information.
Haven’t submitted your tax return? Contact our team to find out your next steps.
Step 2: View Your Tax Bill
Before paying, you might want to view your tax bill. You’ll see an overview of how much you need to pay on your Business Tax Account page (this’ll be the first page you land on after logging in). Scroll down to ‘Self Assessment’ and then look for the heading ‘Your Balance’. This’ll tell you how much you owe.
For a clearer breakdown of what you owe, check your SA302 Tax Calculation. You can find this on the same page, under the heading ‘Your Returns’. Simply click the link for the correct year to view a breakdown of your total bill.
NOTE: The total on your tax overview and your balance will be different if you’ve been submitting payments on account. These are advance payments designed to spread the cost of your tax bill over a longer period, and are paid before 31st January. To view your payments on account, head to ‘View payments and credits’ under the heading ‘Your Balance’.
Step 3: Pay Your HMRC Tax Bill
Under ‘Your Balance’, click ‘Make a Self Assessment Payment’. You’ll be able to choose if you want to pay today or set up a payment for the future (for example, if you need to wait until you’re paid before the transaction goes through).
Choose between paying the full amount or paying a different amount. You’ll need to pay the full amount by January 31st to avoid penalties.
After selecting the amount you’d like to pay, you’ll be able to choose your payment method:
- Pay by bank account: This involves transferring the payment from your bank to HMRC. It’s a simple method and doesn’t require you to submit your card details, but instead links with your bank to verify the payment. It’s quick, too, and your payment will usually reach HMRC the same or next working day.
- Direct debit: This method authorises HMRC to automatically collect the payment from your bank account, which can be helpful for planned payments as it reduces the risk of forgetting. However, it takes several working days to set up and isn’t a great idea if you’re close to the payment deadline.
- Personal debit card or a corporate credit or debit card: Paying by card allows the payment to be processed instantly, making it useful for last-minute or deadline-day payments. Personal debit cards do not incur HMRC fees, but corporate cards are charged a processing fee, which can increase the overall cost of your tax for larger payments.
Step 4: Enter Your Payment Information
This step will vary depending on which payment method you chose.
If you’re paying by bank account, for instance, you’ll need to:
- Select the name of your bank
- Add your email address (optional: it’ll only be used to confirm the payment)
- Check your details and confirm
- Choose how you want to connect with your bank (either scanning a QR code on your phone or navigating to your bank’s website)
- Following the steps to complete the payment either in your app or through the website
If you’re paying by Direct Debit, you’ll need to use your payment reference to set up the Direct Debit with your bank. You’ll enter your bank information when prompted through the HMRC website, including your account number and sort code. Allow three working days for this payment to be taken.
To pay by card, you’ll be asked for your billing address and card details, including your card name and Card Security Code.
Step 5: After Paying Your HMRC Tax Bill
Make sure you see a ‘Payment Complete’ page before leaving the HMRC website. We also recommend making a note of your payment reference, if you haven’t already.
If you entered your email address, you’ll also receive an email confirming your payment. Save this for future reference.
Will MTD Affect How You Pay Tax?
How will MTD affect how you pay your tax bill? In short, it won’t. You’ll still need to pay what you owe by 31st January, and the payment systems will remain the same. What will change, however, is how you report your business income and expenses.
Read our guide on MTD for ITSA to learn more.
How to Simplify Tax Returns and Tax Bills
Scrambling to submit before deadlines is never fun, and it’s a sign that your bookkeeping isn’t as organised as it could be. But when you’re running a business, what else can you do? That’s where we come in.
At Angel Bookkeeping and Payroll Services, we can take over your tax tasks so that you don’t have to worry. We’ll set you up with a cloud-based bookkeeping system, automating your cash flow reporting to minimise labour on your side, and our team will take care of the rest.
From tracking your income and expenses to recording proof of your finances, we’ll ensure everything’s ready to make Self Assessment tax returns a breeze. We can also remind you of deadlines and help you pay your tax bill, ensuring last-minute scrambles are a thing of the past.
Make Paying Your Tax Bill Simpler
To avoid tax panic and potential penalties this year, team up with our professional bookkeepers in Sussex. With deadlines approaching and a new tax year just around the corner, there’s never been a better time to rethink your record-keeping.
Want to learn more about our services? Get in touch with us today, and let’s talk tax.