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Paying tax and receiving a rebate

Paying too little tax

The tax payment is usually due on 31 January following the end of the tax year to which the payment relates. Even if you do not receive a remittance slip from HMRC, arrangements must be made to pay the tax by the due dates to avoid interest and penalties.

If you have submitted a tax return and have additional tax to pay, HMRC will usually issue you with a tax payment slip.

Sometimes you may need to pay future tax liabilities on account (payments on account). This may be if a proportion of your income is paid gross and has not been taxed at source. If you are unsure if this applies to you, please consult a tax adviser.

If the actual liability is less than what has already been paid on account, a repayment will be due.


Paying too much tax

If you have paid too much tax at source you may be due a repayment. If you submit a self-assessment, this will be calculated when you complete your tax return. If a repayment is due, you can enter your bank details on your tax return and HMRC will repay the tax directly to you. Or they will send a cheque.

If you are not required to complete a tax return, HMRC may still review your tax position following the end of the tax year. In this case, HMRC will write to you.

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How do I pay my tax liability?

If you complete a tax return you should use your 10-digit UTR to make a tax payment to HMRC. We recommend using the payslip provided by HMRC when making a payment to ensure it is allocated to the correct account.

If you have not received a payslip from HMRC you can create one online

There are a number of ways in which you can pay the tax including:

  • sending a cheque in the post
  • by debit or credit card
  • online banking
  • at the post office, bank or building society.

More information on making self-assessment tax payments to HMRC


Can I pay in instalments?

You can then choose to spread the payment and have the tax collected through an adjustment to your PAYE code if:

  • your self-assessment tax liability is less than £3,000 and
  • you submit your tax return online by 30 December after the end of the tax year to which it relates, (31 October for paper tax returns).

If you fail to make a self-assessment tax payment by the deadline, HMRC will add interest that accrues daily and is currently charged at 2.75 per cent a year (August 2016), however this interest rate can vary.  In addition to interest, there are also late payment penalties that can be applied by HMRC.

More information on late payment of tax