Taxpayers warned to check their tax payments as deadline looms – do you need to act now?

Dementia: Pensioner fumes over council tax changes

Make the most of your money by signing up to our newsletter for FREE now

Invalid email

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Self Assessment is known as the system HMRC uses to collect Income Tax from some members of the public – such as self-employed workers – with tax normally coming from pensions, wages and savings.

Those who file Self Assessment tax returns are often required to make payments on account.

This payment is due by the end of July and it is the second instalment towards the financial year’s tax bill, with the first payment needing to be paid by January 31.

Due to the Government’s support measures in response to the pandemic, Self Assessment payments due in July 2020 were postponed to January 2021.

However, the LITRG is cautiously reminding taxpayers that this is not the case for the second payments on account for 2020/21.

These payments are due on July 31 and the organisation is concerned taxpayers have forgotten of their tax obligations due to the recently shifting payment dates.

Payments can be made through a variety of methods, including debit card, cheque and bank transfer.

However, taxpayers are not able to complete tax payments using their own personal credit card.

READ MORE: State pension age changes may affect your free bus pass and when you retire

Tax: Self Assessment form

Tax: Taxpayers are being warned to check their tax payments which may be due at the end of this week (Image: GETTY)

Those who file late may receive a penalty beginning at £100, which can increase £1,600 per year or more.

Specifically, the LITRG wants to remind taxpayers to check the amount they are due to pay, if they have not already filed.

In order to avoid overpaying, taxpayers are being encouraged by the body to either file their tax return before the end of this month or file a claim to decrease their payment on account with HMRC.

According to its website, the LITRG’s aim is to “persuade politicians and HM Revenue & Customs to make the tax system easier and fairer for all”.

DON’T MISS

Inheritance tax grab: Sunak could target ‘property, capital gains and personal income’ [INSIGHT]

Do YOU have a Tesco Bank account? All current accounts set to close – Take action now! [ANALYSIS]

Council Tax Reduction warning as Britons could get up to 100% off bill – are you eligible? [ANALYSIS]

As an initiative affiliated with the Chartered Institute of Taxation (CIOT), the reform group has set out to educate the public on policy regarding tax, welfare and tax credits for the last 20 years.

Victoria Todd, the head of the LITRG, outlined how taxpayers can complete their tax payments.

Ms Todd said: “If you have already submitted your 2020/21 tax return, then your second payment on account amount will be recalculated by HMRC based on the information on the tax return and so the amount due on July 31 should be correct.

“Therefore, if you have not yet filed your tax return for 2020/21 you should consider doing so before July 31.”

She added: “If you cannot file the 2020/21 tax return in the next few days but think your tax bill for 2020/21 will be less than that for 2019/20, your payments on account may be higher than they need to be.

Tax: HMRC form

Tax: Those who file Self Assessment tax returns are often required to make payments on account (Image: GETTY)

“In this case, you may be able to make a claim to reduce the level of the second payment on account for 2020/21. We explain how to do this on our website.

“It is also important to factor any coronavirus support payments that are taxable in 2020/21, such as the first three payments under the Self-Employment Income Support Scheme, into calculations when working out whether you can reduce your 2020/21 payments on account.”

Ultimately, the LITRG is concerned that people will just ignore requests to make their tax payments due to financial reasons.

Ms Todd explained: “If you cannot pay the amount due, contact HMRC as soon as possible to discuss the possibility of paying the amount due in instalments.

“HMRC have indicated they will continue to treat all such requests sympathetically in view of the current economic situation.”

Roy Walsh

Roy Walsh

Related post