Are your July 2021 tax payments made?

A reminder that your second instalment of self-assessment taxes was due on 31 July 2021

If you have already made payment to HMRC of your second instalment of self-assessment tax due by 31 July 2021, or if you did not need to make payments on account for 2020/21, there is no need to read this alert. If not, and having to pay tax by 31 July 2021 has slipped your mind, please pay as soon as you can.

You can login to your tax account to download the most recent statement that should set out how much there is to pay. If you are unsure how to do this or want us to check the numbers due for you, please call. If you are short of funds and unable to make payment immediately, the following notes set out how to approach HMRC to spread payments and also list late payment penalties that may be applied.

If you cannot pay your July instalment

You can set up a plan with HMRC to spread the cost of your Self-Assessment bill if:

• You owe £30,000 or less.
• You do not have any existing payment plans or debts with HMRC.
• Your tax returns are up to date.
• It is less than 60 days after the payment deadline.

You can set up a plan online or by calling the Payment Support Service on 0300 200 3822.

Penalties and interest for late payment

If you have not yet paid the balance of tax for 2019/20 that was due by 31 January 2021, you’ll also face penalties, where you pay late by the period shown below:

• 30 days late – a penalty of 5% of the tax you owe at that date.
• 6 months late – a further penalty of 5% of the tax you owe at that date.
• 12 months late – a further final penalty of 5% of the tax you owe at that date.

These penalties are in addition to any penalties for sending your tax return late.

HMRC will also add interest to any taxes that are unpaid after the due date.

Please call if:

• You would like us to check and see if it might be possible to reduce tax due 31 July 2021. For example, this might be possible if your self-assessment profits for 2020-21 are lower than those for 2019-20.
• You need help accessing a recent statement to see how much you owe, or details of which bank account to pay, or
• You would like us to work out the best approach to HMRC to spread the cost of taxes due.