We know that many individuals and small businesses are finding it harder to pay this year, due to the pandemic.
Anyone who can’t afford to pay their tax bill in full can set up a payment plan, once they’ve filed their return, to spread their tax bill into monthly instalments.”
Taxpayers can pay their Self-Assessment tax bill or an estimated figure in several ways, as follows:
Online
• • •
Via their bank
By post
More information concerning how to pay is available at GOV.UK.
Those who cannot pay their bill in full can apply to spread the cost, by way of setting up a payment plan, in up to 12 monthly instalments at GOV.UK, on the proviso that they have no:
Outstanding tax returns
• • •
Other tax debts
Other HMRC payment plans in place
The debt also needs to be between £32 and £30,000, and the payment plan must be set up no later than 60 days after the due date for payment. Taxpayers are advised that they should set the payment plan up sooner rather than later, and prior to 3 March 2021, to avoid the 5% late payment penalty. Anyone who does not meet the requirements, or who needs more than 12 months to pay off their bill, can apply for a payment plan by liaising with one of HMRC’s debt advisers. Interest accrues on all outstanding balances, and that includes for those who are in payment plans. For those Self-Assessment customers required to make Payments on Account, who know that their 2020-21 tax bill is going to be lower than that in 2019-20, for example, if they have seen a loss of earnings due to coronavirus, they have the option of reducing their Payments on Account. Further information relating to this is available online.
Taxpayers are reminded to be vigilant to phishing scams and fake HMRC websites. There is guidance available on recognising genuine HMRC contact here.
Back to Contents
P9X: Tax Codes 4 February 2021
The 2021 version of P9X (English and Welsh) are now available for employers which confirms the tax codes to change and which to carry forward for the new tax year on 6 April 2021.
Use P9X to find out which PAYE tax codes to change, how to change them and which codes to carry forward ready for the new tax year.
The document confirms that £12,570 will be the basic personal allowance.
New employees
Where an employee starts between 6 April and 24 May and provides a P45, follow the instructions at www.gov.uk/new- employee.
Where employers have agreed exemptions from online filing and operate a manual payroll, follow the instructions in the RT7, 'Guidance for employers exempt from filing real time information'.
Leavers
Tax codes do not need to be amended for employees leaving prior to 6 April, even if they will receive pay after that point – the old tax code should be used.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 421 of 590
Made with FlippingBook - Online magazine maker