Millions of taxpayers are focused at the moment on submitting their digital tax returns before 31st January 2023.
However, this is an important date in the calendar for more reasons than that. The 31 January also marks the deadline for the first payment on account for the 2022/23 tax year.
Having completed your tax return for the year you should know how much you owe, but this payment can still be a shock.
It is important that you have the necessary funds to cover this payment, as you will face an automatic penalty of five per cent of the tax that is unpaid if a balancing payment or payment on account is still unpaid more than 30 days past the due date.
These 30 days are meant for those who intend to pay on time but, for some genuine reason, fail to do so.
However, more importantly, if you are unable to make a tax payment as you have insufficient funds to cover the balance that is due, this gives you time to speak with HM Revenue & Customs (HMRC) and propose a suitable scheme of repayment.
The last few months have been particularly challenging for many businesses and there are likely to be many people out there who are concerned about their ability to pay in the weeks ahead.
We can offer advice on your options if you think you may struggle to pay. To find out more, please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 11th January 2023.