It might sound surprising for beginners but yes there are multiple ways that are useful to pay tax bills. However, previously only the cheque and the para method were allowed in this regard. But things have changed a lot in the current times. There are several options that you can opt to pay the tax bills according to your suitability. If you are self-employed and looking for the best possible different ways to pay a tax return in the UK, you are on the right page. In this guide, we will help you to learn more about the suitable ways according to your business needs. Let us get delved to know further.
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What’s a Sole Trader and How Do They Pay Tax Returns?
In simple words, we can say that a sole trader is just another terminology that is being used for self-employed individuals. In case you are an individual who is running a company on your own and does not need to hire employees or pay the VAT, you will be considered in the category of sole trader according to HMRC.
However, if your business is in need of hiring employees and you are paying VAT also, you will be considered a limited company. Moreover, you will be required to get registered with the company’s house in this case. Your business needs and circumstances will help you to choose between both benefits.
What is the Deadline for Filing Tax Returns?
Of course, you are given the deadline to pay the tax bills to avoid late filing penalties and tax fines. You will come across several deadlines in this procedure of paying the tax. There is a requirement of choosing the suitable method of paying the tax bills and the deadlines will come across according to your choice of method. Some possible ways are listed and explained below along with the deadlines that you might wonder about as a beginner.
1- Pay Tax Returns via HMRC Online
The deadline is supposed to be the 31st of January if you choose to pay your tax bills online via HMRC. Many people choose this method because they are of the view that this is the common, easy and quick way to pay the tax bill. If you plan to pay your tax bills online, you will have to get registered for online self-assessment by the deadline 5th of October.
You will be required to keep the UTR number with you. Ensure that you are paying with your debit card. The day you pay the tax bills, the amount will be accepted by HMRC right away not on the day the account hits the payment.
2- Pay Tax Returns By Cheque
When you choose to pay the tax bills through the cheque, the decline will be 31st of January. However, it will take 3 working days to get the process to take place. It is known to be an old method that will rely on the post method as well.
This might not be considered an immediate way to complete the procedure. So this totally depends on your choice and suitably that will help you to choose the right kind of method for your tax bill payments.
3- Pay Tax Returns Direct Debit
In case of paying the tax bills with direct debit, the deadline will be again 31st of January. However, five working days are required for the process of payment. You need to make sure that every time you use your direct debit to pay the tax bill, it has to be new every time. You will need to keep the UTR number to complete the process successfully.
4- Pay Tax Returns PAYE
If you’re choosing this method for the online procedure, the 30th of December is the deadline. In the case of the paper system, 31st October is the deadline.
5- Faster Payment By Bank Transfer or Phone, or CHAPS
The deadline for this method is the 31st of January again. You can either use the bank transfer method, CHAPS, or payment transfer method. This method gets the payment clear in one working data usually. People who are paying from overseas are more inclined towards such methods.
The Bottom Line
Now that you have gathered a fair amount of information about different ways to pay a tax return in the UK, we can bring the discussion towards wrapping up. There are different ways to pay tax bills, however, your unique business needs and circumstances can be helpful for you to choose the right option for you. You will have to be aware of your business needs and take a conscious decision in this regard to experience a successful procedure. We hope these few minutes of reading will help you to develop a better understanding of different ways to pay a tax return and how can you handle it efficiently in the future.
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Disclaimer: All the information provided in this article on whether are there different ways to pay tax returns, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.