How will you pay your self assessment tax? HMRC Budget Plan?

Revenue and Customs

So you have done your tax return (SA100), you had a brilliant year but the bad news is that your payments on account for next year 2012-13 are based on 2011-12 and next year things don’t look as good.

Why not reduce your payments on account using

You can also change your payments on account using HMRC online but its currently set to 2011-12 not 2012-13, the screen asks for:

 This allows you to claim to reduce the payments on account you have been asked to make for tax year ending 05 Apr 2012.

*indicates required information

Step 1 – Please specify amount Help about: Please specify amount - opens in a new window
Reduce each payment on account to: £

e.g. 100.00

Step 2 – Please state reason Help about: Please state reason - opens in a new window
Reason for reduce payment: *

  • Please select an option below
  • My business profits are down/my business has ceased.
  • Other income has gone down.
  • Tax allowances and reliefs have gone up.
  • Tax deducted at source is more than previous year.
If these reasons do not fit your circumstances you will need to contact your HM Revenue & Customs (local) office.
Another option might be a Budget Plan

Budget Payment Plans are only available to Self Assessment customers who are up to date with their payments and who pay by online Direct Debit.

When you set up your Direct Debit you must make sure you select the Budget Payment Plan option.

With a Budget Payment Plan you make regular payments towards the amount you should pay by 31 January/31 July. The plan is flexible and allows you to:

  • decide the amount you want to pay each week or month
  • change the regular payment amount
  • stop making payments for a period of up to six months
  • cancel payments at any time.

There are other ways to pay too, follow these links