Troubles paying your self-assessment tax bill

Hopefully, by now, you have filed your self-assessment tax return. If you have then you won't get the £100 fine. But what happens if you can't pay your tax bill.

Your tax bill at 31st January 2010 comprises what you owe for the tax year ended 5th April, 2009 and your first payment on account for the tax year ended 5th April, 2010. From 1st February, 2010, interest will be charged on the total owed. If your 2008/9 liability is not paid by 28th February, 2010 you will receive a surcharge (penalty) of 5% of 2008/9 tax owed. There will then be a further 5% surcharge if any of the 2008/09 tax due remains outstanding after 31 July 2010.

Recently, the Chancellor announced an extension to the Business Payment Support Service for businesses affected by the current economic conditions. This service is designed for businesses who are worried about being able to meet tax, National Insurance or other liabilities owed to HMRC. You can get in touch with them to discuss payment options to help you deal with temporary cashflow difficulties on 0845 302 1435.