An easier way to pay your tax for 2016/17 – Urgent action needed!

  • by Carole Jordan
  • 15 Dec, 2017
pay your self assessment tax bill through your tax code paye businessheads brighton accountants and consultants
An easier way to pay your impending tax bill could be through your PAYE tax code. Find out if you qualify and how you can go about setting this up.

How to qualify for self assessment payments through your tax code:

  • You must submit your tax return by December 30th
  • You must owe less than £3,000 on your tax bill
  • You must already pay tax through PAYE, either as an employee or through a company pension

What do you have to do to setup PAYE tax payments?

Absolutely nothing. Well sort of, HMRC sets up the payments automatically for you, as long as you’ve not specified for them to do otherwise; by ticking the box on your tax return that asks them not to do this. Then over the next 12 months higher tax deductions will be made from your salary or pension, on top of what you would normally have to pay from your PAYE income.

If you don’t qualify by the 3 criteria above then you won’t be able to pay your tax this way.

When can't you pay through your tax code?

  • If you don’t earn enough through PAYE in order for HMRC to collect the tax
  • If you’d pay more than 50% of your PAYE income in tax
  • If you’d end up paying more than twice as much tax as you normally do

Class 2 (‘Self Employment Stamp’) National Insurance cannot be paid through your tax code and you will have to make payment in the January following the end of the tax year.

This is a great way for you to spread the cost of your tax bill throughout the year, in easy to manage nuggets each month. It could save you the stress of having to put money aside, and remembering to pay your bill by January 31st.

But remember, your tax return must be submitted by 30th December to qualify!

If you’re stuck or still struggling then head over to our free resources page , where you can find our free tax return checklist to help you compile all the relevant information needed.

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