Avoid a penalty from HMRC and pay your tax by 31 January 2020

January can be a stressful month for many. Never mind the short days, cold weather and post-Christmas blues kicking in, the looming self-assessment return and tax bill deadline should guarantee a few sleepless nights for millions of self-employed and business owners.

It is worth remembering that with over 11 million digital tax returns being sent to HMRC each year, around 90,000 of which will need review due to mistakes in the first submission. To alleviate the problem, HMRC has just issued an update to help with some last-minute technical questions.

No matter how well you prepare the final tax bill amount can come as a surprise, HMRC may request more than you expected, or you may not have put aside sufficient funds to cover it. So what happens if you cannot pay the tax? Unfortunately, it is not possible to put the tax bill on a credit card.

If you are experiencing financial difficulties, do not ignore a tax bill. Once the interest and penalties start to pile up, they will likely lead to legal action. Contact HMRC as soon as possible as you might be able to set up a payment plan to pay in instalments. If you or your business is facing financial problems, then please do not put it off.

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Avoid a penalty from HMRC and pay your tax by 31 January 2020