Paying your tax bill in a timely fashion is of the utmost importance. If you’re a business owner or you’re self-employed, you’ll have to either pay self-assessment tax or corporation tax. Failure to do so could lead to fines, sanctions, and maybe even prosecution. But how do you actually pay your tax bill?

Your ways to pay

There are many ways to pay a tax bill, and it all depends on which you find the most convenient. Your options are:

  • Online/telephone
  • CHAPS (clearing house automated payment system)
  • In person (bank/building Society)
  • Postal cheque (self-assessment only)
  • BACS
  • Direct debit

If you want to pay instantly, your best option is to pay by telephone or by using the online payments system. The other payment methods can take between three and five working days to clear – depending on whether you’re paying self-assessment tax or corporation tax, as well as other external factors. 

Is one better than the other?

The simple answer is no. There’s no “better” way to pay – as long as HRMC receives the money you owe in an accepted fashion, it doesn’t matter which method you choose. However, more and more people are choosing to use a combination of the online gateway/direct debit methods, as they can offer more convenience. You can either pay immediately, or set up a direct debit to take the money out of your account at a chosen date.

What do you do if you’re not sure?

If you’re still not sure about paying your tax bill, what the best way to do it might be, or you simply want to alleviate some of the worries, your best bet is to contact a chartered accountant for help. If they offer tax planning services they will be able to help you prepare your self-assessment and even file it on your behalf, making sure it’s done as quickly and conveniently as possible. You also won’t have to worry about missing deadlines. It’s a worthwhile investment, particularly if you’re not confident about correctly filing your tax return. 

For more information about paying your tax bill, or for help filing, contact Harris Lacey & Swain today.