What to do if you can’t pay your Self-Assessment on time!

What to do if you can’t pay your Self-Assessment on time!

For some small business owners and sole traders, the run-up to 31 January comes with a stressful reality: tax is due but there is no money available to pay the bill!

When this happens, the goal is to take control of the situation early because ignoring it is usually the start of more issues!

The following are practical steps to take if you’re worried you won’t be able to pay your self-assessment tax bill in full:

1) Get the exact figure

Confirm the final amount due and check what that payment actually includes, because it’s not always as straightforward as people expect. This is a good reason to get your self-assessment completed as soon as possible each year.

2) Pay what you can

Even if you can’t pay the full amount, paying something helps you stay in control.

3) Get advice early

If you’re unsure what your options are, ask sooner rather than later. The earlier you speak to your accountant, the more breathing room you usually have.

4) Get in touch with HMRC

The worst thing is waiting until the last minute. If you cannot pay what’s due, it’s better to engage early. https://kennedysaccounting.uk/hmrc-updates-when-to-set-up-time-to-pay-plans-online-insights/

It is always worth remembering if you can’t pay in full, you’re not the only one, but ignoring it is the one move that almost always makes things worse. Treat it like a cashflow problem: get clear on the number, make a plan, and take the next step.