Self-Assessment Tax – what’s so important about the 31st July
Payment on Account – 2024/25 Tax Year Update
Payment on Account is a tax payment made twice a year by self-employed individuals to help spread the cost of their tax liability for the current tax year.
Key Dates:
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The second Payment on Account for the 2023/24 tax year is due by 31st July 2025.
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These payments are based on the previous tax year (ending 5 April 2024).
Example
Your tax bill for the 2022/23 tax year was £3,000. You made two payments on account last year of £900 each (£1,800 total).
Your total tax to pay by midnight on 31 January 2024 was £2,700, made up of:
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A balancing payment of £1,200 for the 2022/23 tax year (£3,000 minus £1,800)
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The first payment on account of £1,500 (half of your 2022/23 tax bill) towards your 2023/24 tax bill
You now need to pay your second payment on account of £1,500 by midnight on 31 July 2025.
If your actual tax bill for the 2023/24 tax year is more than £3,000 (your combined payments on account), you’ll need to make a balancing payment by 31 January 2026.
If you expect your tax bill for the current year to be lower than the previous year, you can ask HM Revenue and Customs (HMRC) to reduce your payments on account. This can be done online through your HMRC account or by post.
If you know your tax bill is going to be lower than last year, you can ask HM Revenue and Customs (HMRC) to reduce your payments on account. You can do this either online or by post.
Spread the cost your Self Assessment Tax Return
Covering the cost of your HMRC Tax bill is a regular and considerable expense and something an increasing number of businesses are choosing to finance and since 2018, you can no longer pay your bill with a personal Credit Card.
Finding a way to pay a self-assessment tax bill can be hard when a significant sum needs to be found from business cash flow, and as such, spreading the cost is an increasingly attractive option for many.
A short-term loan from White Oak UK is quick and easy to arrange, helping you to spread the cost of your tax bill over a 6, 10, or 12-month term. We’ve eliminated the red tape from our business to make it faster and more convenient to get a loan.
Benefits include:
- Options to pay monthly or quarterly
- Loan in as little as 24 hours
- Free up cash flow for other areas of your business
- No red tape
- A dedicated Account Manager
- Apply quickly and easily with E-sign loan documents
Act now before the deadline
Whilst over 93% of taxpayers filed their tax on time earlier this year, there were still more than 700,000 who missed the deadline.
If you are one of the many thousands of self-employed people due to pay your Self-Assessment Tax by July 31st then now is the time to start considering how you will cover this considerable cost.
Talk to us today on 0333 014 9000 or request a call back from our tax finance specialists to discuss your options
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