SELF-ASSESSMENT - 19.01.2011

Don’t miss the payment deadline

Deadline. There are just a few days to the January 31 deadline for paying the tax you owe for that year and to make the payment on account for 2010/11. If you’re late you’ll be charged interest and if any of the 2009/10 tax is outstanding after February 28, the Taxman will hit you for a surcharge of 5% of the amount owing. But how late can you leave it?

Trap. The Taxman isn’t part of the Faster Payment Service for bank transfers which guarantees payment the same or next day. This means that where you pay tax over the counter at your bank or post office, you need to allow at least three working days ahead of the deadline. But where you’re running short of time, there’s a speedier option.

Tip. You can use the government’s BillPay system to make a payment online right up to the last minute before the January 31 or February 28 deadlines. The Taxman unhelpfully changed the web address for this at the end of December; it’s now http://www.santanderbillpayment.co.uk/hmrc. All you need is a debit card and your ten digit tax reference (you can find this on a tax demand or statement). You can also use a credit card to pay but there’s a handling charge, usually 1.25% of the amount.