January 2012 - Newsletter
SELF ASSESSMENT TAX PAYMENTS
Any outstanding tax for 2010/11 that is not being collected through a future tax code is due for payment by 31 January 2012. Any first payment on account for 2011/12 is also due for payment by this date. The second payment on account is not due until 31 July 2012.
How to pay
The preferred method of payment by HMRC is either through internet/telephone banking or by using the electronic BillPay method. The advantage of this payment is direct acknowledgement of the amount and the date of payment. When using these electronic methods you must have your ten-digit Unique Taxpayer Reference (UTR).
If using internet/telephone banking you will also need HMRC’s bank account details which are as follows:
Sort code: 08 32 10
Account number: 12001039
To make payment by either debit or credit card go to www.billpayment.co.uk/hmrc. You will need your UTR and card details. Please note that a charge is made for payment by credit card.
If you still wish to make payment by post and cheques should be made payable to ‘HM Revenue & Customs only’ followed by your 10- digit UTR. Please note HMRC note the date of payment when the cheque is cleared not when it is received at their office. You therefore need to allow plenty of time for processing if you do not want to incur an interest charge. Resources have been restricted for cheque processing and January will see an increase in the post. If you do not receive a payslip from HMRC, you should complete and print a substitute payslip at http://www.hmrc.gov.uk/payinghmrc/payslip-sa.htm. If you do not have a pre-printed envelope from HMRC, the cheque should be sent with the payslip to HM Revenue & Customs, Bradford, BD98 1YY.
Interest and surcharges for late payment
Late payment interest (currently 3% per annum) will be charged on any unpaid tax from 31 January 2012 until the date of payment – note the comment regarding cheques! The following surcharges apply to the late payment of any balancing tax for 2010/11. Please note that these do not apply to payments on account of 2011/12:
30 days late: 5% of tax outstanding at that date
6 months late: 5% of tax outstanding at that date (in addition to the above penalty)
12 months late: 5% of tax outstanding at that date (in addition to the above two penalties)
If you cannot make payment
If you are unable to make full payment of your liability by the due date, it is best to contact HMRC to advise them of any difficulties at an early date. It may be possible to arrange a payment plan with HMRC and in these circumstances unnecessary penalties may be avoided. Interest will always be charged from the due date until payment is made in full.
You will need to contact HMRC’s Business Payment Support Service Helpline on 0845 302 1435.
If you have any queries, please do not hesitate to contact either Linda Ainsworth or Lisa Thompson at Wrigley Partington. We cannot always contact HMRC on your behalf but we can discuss any issues with you and advise you on the best course of action.
www.wrigleypartington.co.uk
Sterling House, 501 Middleton Road
Chadderton, Oldham OL9 9LY
Phone: 0161 622 0222
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