Tax Return Self-Assessment Filing Date
The Self-Assessment deadline for filing is 31st January following the tax year to 5 April. Therefore, for the Tax Year 2022/23 the filing deadline is the 31 January 2024. Should you miss this deadline HMRC will apply a fixed penalty of £100.
Payments on Account
HMRC will require you to make payments on account if your tax due is more than £1,000. The below example is for tax year 2022/23:
e.g. Tax liability £900 (< £1,000)
HMRC require you to pay the full liability due in one payment
- 100% due on 31st January 2024 – £900
e.g. Tax liability £2,000 (> £1,000)
HMRC require you to pay the full liability due in one payment
- 100% due on 31st January 2024 – £2,000. HMRC will also require you to make payments on account for next year based on the 2022/23 liability this will be paid in two instalments:
- 50% due on 31st January 2024 – £1,000. The total payable for 31 January 2024 is therefore £3,000.
- 50% due on 31st July 2024 – £1,000
Occasionally payments on account will not be due when your liability is more than £1,000 where 80% of this has been collected already at source through PAYE.
Balancing Payments
HMRC will require you to make a ‘balancing payment’ if your liability is more than the previous year. For example, if in 2021/22 the liability was £2,000, the following 2 payments on account would have been made:
- £1,000 on 31 January 2023
- £1,000 on 31 July 2023
However, if your liability is £3,000 in 2022/23 then a balancing payment of £1,000 must be made on 31 January 2024 to account for the liability in excess of the payments on account. In addition to the balancing payment being made in January 2024 you will also need to make a further payment on account of £1,500 (i.e. 50% of £3,000) towards your 2023/24 liability in advance. The total payable being £2,500 in January 2024 (£1,000 balancing payment plus payment on account of £1,500) followed by £1,500 payment on account in July 2024
The table below shows an example of a person whose tax liability in their first year is £5,000; rises to £6,000 in year two, £7,000 in year three and four and the tax payable.
|
First Year of Self-Assessment Tax Year 2022/23
Tax Liability £5,000 |
Second Year of Self-Assessment Tax Year 2023/24
Tax Liability £6,000 |
Third Year of Self-Assessment Tax Year 2024/25
Tax Liability £7,000 |
Fourth Year of Self-Assessment Tax Year 2025/6
Tax Liability £7,000 |
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| Payment Dates | Jul 31st 2022 | Jan 31st 2023 | Jul 31st 2023 | Jan 31st 2024 | Jul 31st 2024 | Jan 31st 2025 | Jul 31st 2025 | Jan 31st 2026 |
| Payments on Account | 1st POA 2023/24
£2,500
(half of 2022/23 liability) |
2nd POA 2023/24
£2,500
(half of 2022/23 liability) |
1st POA 2024/25
£3,000
(half of 2023/24 liability) |
2nd POA 2024/25
£3,000
(half of 2023/24 liability) |
1st POA 2025/26
£3,500
(half of 2024/25 liability) |
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| Balancing payment | £5,000
Full amount of first self-assessment 2022/23 |
£1,000
Difference of £6k liability & £5k POA 2023/24 |
£1,000
Difference of £7k liability & £6k POA 2024/25 |
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| Total Tax | £7,500 | £2,500 | £4,000 | £3,000 | £4,500 | |||
