Do you need more time to pay?
The self-assessment tax deadline is looming on 31st January, you must submit and pay any tax due. Once you have filed your return HMRC will calculate the tax you owe, as well as the National Insurance contributions you need to pay. The deadline for paying your tax return is the same day as the deadline for filing – 31 January.
If you file your tax return late, you’ll get a £100 penalty (if it’s up to three months late, and more if it’s later).
The government recognises that many small businesses have had a difficult year, so there’s support if you think you’ll struggle to pay your tax bill on time.
If you’ve got a bill between £32 and £30,000, and don’t have any outstanding tax returns or debts with HMRC, you can use HMRC’s Time to Pay service to apply for an extension. You’ll need to complete your tax bill first.
Through Time to Pay, you can pay your tax bill by Direct Debit over 12 months.
If you can pay, though, you should, not least because interest will be applied to the outstanding balance from February 2021. There’s lots of guidance on the gov.uk website and you can also call the Self-Assessment helpline on (0300) 200 3310.
The earlier you file, the more time you have to organise payment! Have you already filed?