When do I need to pay my tax bill?

Although you submit one tax return a year, you will probably make multiple tax payments.

This is because of the ’Payment on account’ system put in place by HMRC. The system is there so the Government receives your tax payments sooner.

It works by using your income tax bill for last year, including Class 4 NIC if you pay this, but not including any capital gains tax, as an estimate of what you need to pay this year. This amount is split into two payments, one due in January and the other due in July.

Once your tax return is submitted,the difference between your tax bill and what you’ve already paid, the ‘balancing payment’ is due in January.

Note: Once you’ve submitted your return , you’ll go on to the HMRC website to pay your tax bill.