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“There is no such thing as a good tax.” – Winston Churchill. Yet here we are, — faced with one all the same. If you’re self-employed or earning extra income outside your 9 to 5, Self Assessment tax is something you can’t afford to ignore. It’s not just a form to fill in. It’s a legal obligation — with real cash flow consequences if you miss it, misjudge it, or misunderstand it. But here's the good news: paying your tax bill doesn't have to be stressful. It doesn't have to be last-minute. And it definitely doesn't have to come with a side order of panic. In this guide, I’ll walk you through how to pay Self Assessment tax with clarity — not confusion. You’ll learn what to expect, when to act, and the smartest way to pay (including a method that takes less than 60 seconds). We’ll also unpack hidden traps like payments on account, how to avoid penalties, and what to do if your cash flow’s tight. Read on — your future self (and your bank balance) will thank you.
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The routine services you would expect us to provide are listed below but it’s the important ongoing professional advice that really helps our clients.
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Starting from 1 October 2024, UK law mandates that employers distribute all tips equally among their staff, retaining none for themselves. Companies receiving tips must first determine if they are "qualifying tips," which includes both employer-received tips, like service charges, and certain worker-received tips, such as cash given directly to staff. Employers are advised to adhere to the code of practice on fair and transparent tip distribution, considering factors like job roles, employee tenure, and customer intent when allocating tips.
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Bad debts are loans or outstanding balances that are no longer recoverable and must be written off. These uncollectible debts significantly impact a company’s financial statements. Managing bad debts is crucial for maintaining financial health, and businesses should consult tax professionals to ensure compliance with relevant regulations. Preventing bad debts involves proactive measures to manage credit risk and ensure timely payments. Key strategies include conducting thorough credit assessments, setting clear payment terms, establishing credit limits, and maintaining regular communication with customers. Additionally, businesses should have well-defined collection policies and consider options like invoice factoring and credit insurance. By implementing these strategies, company directors and contractors can minimize the risk of bad debts and protect their financial stability.
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The freezing of tax thresholds has led to significant revenue for HMRC, with an estimated £63.2 billion in income tax projected for this year—£16.3 billion more than the previous year. Over 1.77 million individuals above the state pension age have been affected, and 4.4 million more people are expected to pay income tax due to earnings surpassing the frozen personal allowance. Additionally, more than 1 million people are estimated to pay the additional rate tax this year. HMRC also anticipates collecting £10.4 billion from people’s savings interest, emphasizing the importance of tax-efficient savings options like cash ISAs.
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Online platforms like Etsy, eBay, and Instagram are preparing for new disclosure rules on transactions. HMRC has already started compliance checks on the highest reported earners. Following the UK’s commitment to the OECD’s global data sharing objective, HMRC now has access to seller information from online platforms. Platforms must collect sales and income data from sellers and influencers to share with HMRC.
We are experienced certified accountants in Kent that are committed to helping small businesses achieve growth.
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