How to pay your Self Assessment tax bill?

Paying your self assessment tax bill should be easy. You’d expect the tax man to be falling over himself to get your money. WRONG.

From the 13th January 2018, the HMRC have changed the methods of payments they accept. It narrowed down the options quite considerably.Calculator and coins

Credit cards are no longer accepted (debit cards are ok!). The likelihood being due to card payment surcharges to consumers banned at the same time. The HMRC will not having to absorb the charges imposed by card companies to businesses in doing so.

On 15 December 2017, paying your self assessment bill at a post office counter was withdrawn. Taxpayers can pay by cash or cheque at other bank counters if they have the appropriate pre-printed payslip. Banks may charge for this service.

HMRC will accept cheques for personal tax liabilities, but they discourage payment of corporation tax by cheque. Individuals need to include their UTR number on the face of the cheque and send it, with a completed paying-in slip to HMRC, Direct, BX55BD.

An alternative method to pay many taxes, especially where the amount due is disputed, has been to buy a certificate of tax deposit. Yet, the tax certificate deposit scheme was closed on 23 November 2017. All tax certificates in issue remain valid until 23 November 2023, after which they will have submitted to HMRC for a refund.

So how can you pay?

Electronically. The HMRC prefers bank transfers. Its fast, and generally immediate due to the HMRC accepting faster payments.

You will need your UTR (Unique Taxpayer Reference). This can be found on any correspondence from the HMRC about your self assessment, or on your tax account online.

This shouldn’t be confused with your National Insurance Number (NINO) or your Personal Tax account ID. Both are also visible on your tax account online.

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