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FAQ's

Do I have to send in a self-assessment tax return?
If you have been sent a paper tax return, or a Notice to Complete a Tax Return, then you must complete this and send it in.

I don't usually have to complete a tax return, but I had a new source of income during the year, should I tell the Inland Revenue?
If you have received income which has not been taxed at source, then you must inform the tax office by 6th October after the end of the tax year in question. You may well be asked to complete a tax return, or they may adjust your tax code.

What is the deadline for submitting my tax return?
If you want to guarantee that the tax office will calculate your tax due, then your tax return must be submitted by 30th September. Otherwise the deadline for all tax returns is 31st January.

What if I am late filing my tax return?
Obviously it is best to send in your tax return as early as possible, however if you are late, then the tax office will impose a £100 fine. There will be a further £100 fine after six months.

Do I have to calculate my own tax?
The Inland Revenue will always calculate your tax for you. However they do not guarantee that they can do this by the deadline, unless you send in your return by 30th September.

I am afraid my tax return will be late, but I know I will have tax to pay, what should I do?
The deadline for tax payments is 31st January. To avoid paying interest and penalties you should try and pay your tax on time, even if you have to estimate the amount of tax to be paid.

Can I get any tax owing collected through my PAYE code?
Tax owing can be collected through your tax code if you submit your tax return by 30th September. Only amounts up to £2000 can be collected this way.

What is the deadline for paying my tax?
The deadline is 31st January after the relevant tax year end.

What happens if I can't pay my tax by the deadline?
The tax office will charge you interest for tax paid late. You will also have to pay a surcharge of 5% of the unpaid tax if it is still not paid by 28th February. A further 5% will be chargeable if the tax is still unpaid after six months.

I am expecting a tax refund, when will I get this?
The Inland Revenue will issue your refund as soon as they have processed the return. It has been shown that refunds are often received much more quickly when the tax return is filed on-line.  

Why do I have to pay payments on account?
While employees have tax deducted at source, some taxpayers do not – eg. self-employed people. Therefore it is considered fairer if those taxpayers should pay payments on account towards the tax payable on the following 31st January.

How are the payments on account calculated?
The Inland Revenue assumes that you will earn a similar amount from year to year, therefore the payments on account are set at your tax liability for the previous year, payable in two equal instalments.

When are payments on account paid?
The two instalments are paid by January 31st in the year of assessment, and July 31st in the following year.

What happens if my payments on account do not cover my tax owing at 31st January?
If your tax bill is more than you have paid in your payments on account then you will have a balance to pay by 31st January. You may also find that your next payments on account have risen as well.

But if my tax bill is lower than the payments on account I have made during the year?
If you have paid too much tax you will get a tax refund. However you may still have to pay your next payments on account, though these might be lower.

If I have to pay payments on account which are based on last year's tax, what happens if I don't earn as much this year?
If you know that your tax bill will be lower than the previous year, then you can claim to reduce your payments on account. However if it subsequently transpires that you have reduced your payments on account by too much, then interest may be payable.