For individuals registered for self-assessment, the 31st of January marks three crucial payment deadlines:
- Firstly, it’s the closing date to file your 2022-23 tax return without incurring an initial £100 late filing penalty.
- Secondly, it’s the date by which any balance of tax, NIC, or student loan settlement needs to be made for 2022-23.
- Lastly, it’s the due date for making the first payment on account for 2023-24.
What to do if you cannot afford to make these settlements
HMRC permits taxpayers unable to meet tax settlements by January 31 to spread the cost by applying for a formal HMRC payment plan.
The instructions posted on the GOV.uk website are reproduced below:
Setting up a payment plan
To set up a payment plan you will need:
- the relevant reference number for the tax you cannot pay, such as your unique tax reference number;
- your UK bank account details – you must be authorised to set up a Direct Debit; and
- details of any previous settlements you have missed.
You may be able to set up a payment plan online, however this depends on which type of tax you owe and how much you owe.
If you owe tax from self-assessment
You can set up a self-assessment payment plan online if you:
- have filed your latest tax return;
- owe £30,000 or less;
- are within 60 days of the settlement deadline; and
- do not have any other payment plans or debts with HMRC.
HMRC will ask you about your income and spending when you set up your plan.