Guides

Personal Tax Payment Submission Guide

Payment and submission guide

At Ellis Lloyd Jones we will do everything in our power to make sure that your tax return is accurate, submitted on time and that any tax is paid on time. However, it is important that you understand your responsibilities and the basics of submission and payment to avoid any unexpected surprises.

Your responsibilities

We will prepare your tax return from the records you provide to us. Although we will endeavoured to make sure your return is correct, HMRC view the completion of the form as your responsibility. Because of this, you should check through the return carefully to make sure that all income is correctly stated. To help with this we will attach a schedule to the return giving a breakdown of the entries included on the form. If you have any queries about the contents of the form please let us know before the return is submitted to HMRC.

If you are happy that the return and supporting schedules are complete and correct, you will need to confirm this fact to us before we are able to submit the tax return to HMRC.

If any changes are required, please provide full details and confirm whether the updated return may then be filed.

We submit all tax returns to HMRC electronically, unless a paper submission is required. The filing deadlines for these two types of submission differ, as detailed below.

Deadlines for sending in your tax return 

Paper returns – 31st OCTOBER

Wherever possible Ellis Lloyd Jones will try to file your tax return online but if, for some reason we find we have to prepare a paper return it must reach HMRC by midnight on 31st October.

So for the 2014-15 tax year (ending on 5 April 2015), the deadline for paper returns is midnight on 31 October 2015.

There are very few exceptions. As an example, the deadline may be later if it’s after 31 July when HMRC sends you the letter telling you to complete a tax return. In this case the letter will tell you the deadline – it is usually 3 months from the date of the letter. Or if you’re sending a Self-Assessment return for a registered pension scheme or non-resident company, you can only send paper returns so the deadline isn’t until 31 January.

Online returns – 31st JANUARY

Wherever possible Ellis Lloyd Jones will file your return via HMRC’s online filing system. Your online tax return must reach HMRC by midnight on 31 January.

So for the 2014-15 tax year, the deadline for online returns is midnight on 31 January 2016. There are very few exceptions. As an example, the deadline may be later if it’s after 31 October when HMRC sends you the letter telling you to complete a tax return. In this case the letter will tell you the deadline – it is usually 3 months from the date of the letter.

There’s also an earlier deadline of 30 December if you want HMRC to collect any tax you owe through your tax code. You can ask for this if you owe less than £3,000.

And if the return goes in late…….

The table below shows the penalties you’ll have to pay if your tax return is late. If a Partnership tax return is late, each partner will have to pay the penalties shown below.

Penalties for missing the tax return deadline
Length of delay Penalty you will have to pay
1 day late A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late £10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this.
These are as well as the penalties above.

If you don’t send your tax return in on time, HMRC have the powers to estimate the tax you owe and begin proceedings against you to collect this amount plus interest. You can only change this estimate by sending in your tax return.

Paying your tax

The quickest and safest way to pay your tax is online at HMRC’s website. You will need your 10 digit UTR number to do this. You can locate this in the correspondence we’ve sent you with your tax return or on the front page of the tax return form. You will need to add a ‘K’ to the end of the reference number to make payment.

If you prefer you can pay your tax using the following methods:

Budget Payment Plans

Direct Debit

Bank details for Faster Payments by online/telephone banking or CHAPS

Multiple or composite payments by CHAPS

Paying at your bank by Bank Giro

At the Post Office

By post

Deadlines for paying your tax

31 January

You must pay any tax you owe by 31 January following the end of the tax year.

For example, for the tax year 2014-15 (ending on 5 April 2015) you must pay any tax you owe by 31 January 2016.

The payment deadline is the same for both paper and online returns and there are very few exceptions. As an example, the deadline may be later if it was after 31 October when HMRC sent you the letter telling you to complete a tax return. In this case your payment is usually due 3 months from the date of the letter.

On the 31 January, you’ll need to pay one or both of the following:

  • any tax you still owe for the previous tax year
  • the first of two ‘payments on account’

Payments on account are part payments towards your next tax bill. You don’t always have to pay these – it’ll depend on the amount of tax due and the kind of income you receive.

HMRC will usually send you a ‘Self-Assessment Statement’ that shows how much you owe or you can check your tax bill online.

31 July

This is your deadline for making any further payments on account. For example on 31 July 2015, you’d make your second payment on account for the 2014-15 tax year.

And if you don’t pay your tax on time……

Interest charges if you pay late

You will have to pay interest on anything you owe and haven’t paid, including any unpaid penalties, until HMRC receives your payment.

Find out the latest interest rates on late payments

Penalties for paying late

If you don’t pay the tax you owe for the previous tax year on time, you’ll have to pay a penalty after 30 days and the longer you delay, the more you’ll have to pay. So it’s important to pay the tax as soon as you can.

Penalties for paying late
Length of delay Penalty you will have to pay
30 days late 5% of the tax you owe at that date
6 months late 5% of the tax you owe at that date. This is as well as the 5% above.
12 months late 5% of the tax unpaid at that date. This as well as the two 5% penalties above

The penalties above do not apply to any payments on account that you pay late.

Version – 2015-01