Can you file self employed tax early then pay it installments…

[MyBossIsATwat]

… as long as it’s all paid off by January?

It’s for my husband, he tried to set up a budget payment plan but the HMRC site kept just taking him round in circles so he didn’t get anywhere.

Thanks

Yes. Once you have submitted your return, you still have the same payment due dates as if you submitted it 31st Jan.

@NotBabiesForLong

Thank you for your help 😀

Do you happen to know if it’s possible for me to just do a BACS payment each month? Or does it have to be by card or some other method?

Thanks again

Ooh I’m interested in this too!

No idea on the above but I make monthly payments to premium bonds to cover my tax bill and just transfer across a couple of weeks before due date.

I pay my husbands tax bill by BACS no problem. If you go on their website the details are there and you just use your UTR as the reference. Easy enough to set up a standing order with the details.

I just do a BACS payment each month, and it's always worked fine for me. They send me a bill by July and Jan saying how much I've paid and what I still owe etc. I like to get ahead of myself as much as possible, especially if I'm having a good year, as I know that the following year is when I'll owe more tax and might not have the money as easily then. If there is more than I owe for that particular year, they offer to pay it back or put it towards the next year, which is what I always do. I just use the details from my main Jan/July payments as that is saved in my banking account, with the reference number etc.

The money will just sit on his account. Not a problem

I send over chunks of money as and when I want to. It just goes on my account.

Thank you all for your help 👍🏻

The plan to buy premium bonds with your tax savings is a good one.

Keeps it all separate and in a place where it's harder to spend and you might win a prize while it's waiting to be sent to the tax office.

Then just withdraw the money in early January and pay the bill by debit card or direct debit - I think you can do either option on the website.

You should be able to, but I have known clients do this or pay it all upfront rather than the payments on account only for HMRC to refund the money.
🤦‍♀️

I have a monthly direct debit to them which I set up online. I just divide my tax bill by however many months are left before Jan. That way I know the tax will be paid and I can just forget it. It feels more like a salary then and I don’t get too carried away thinking I’m earning more than I am!

@Chasingsquirrels

You should be able to, but I have known clients do this or pay it all upfront rather than the payments on account only for HMRC to refund the money. 🤦‍♀️

Yep, that's my experience too. Not always, but definitely had tax refunds being made back to the client when they've paid far in advance of the payment due date. Never worked out why it happens for some and not others.

yes, just look up the details online and set up a standing order so that it is cleared by 31 Jan 2022.

I have already paid my July tax and part of my January payment because I want to know it is paid.

I do also have money in premium bonds now, so in future, will add any tax money to that until I need it.