Every year many individuals and businesses who do not have their tax automatically deducted or have extra untaxed income have to submit a Self-Assessment return.
Self-Assessment Tax is due on 31st January, and straight after Christmas, this can be a big expense. However, there is now a facility in place that individuals and businesses can utilise to spread the cost of their Self-Assessment Tax rather than paying one large lump sum.
Features of Self-Assessment Funding
Self-Assessment Funding is great for many as it allows them to pay their HMRC bill on time while avoiding late payment charges. With this facility you can make it work for you and your business, choose whether you want to spread the cost over 3, 6, 10 or 12 months rather than paying it in one large lump sum.
You are not tied into any lengthy contracts. You can choose to renew the next year when your next Self-Assessment Tax becomes due.
Self-Assessment Funding is easy to arrange and is there to suit your needs.
Who can use Self- Assessment Funding?
Self-Assessment Funding can be used by anyone who:
- Is self-employed and earns over £1000
- Earns over £100,000 in taxable income
- Is a trustee
- Earned £10,000 or more before tax, savings, investments, shares or dividends
- Earned income from abroad or lived abroad and has a UK income
- Have paid capital gains tax
- Earned over £2,500 from property rental, or untaxed income
- State pension was over your personal allowance and was your only source of income
- Claimed child benefit and your income was over £50,000
- Was informed by HMRC that you didn’t pay enough tax last year.
Benefits of Self-Assessment Funding
•Spread the cost over 3,6,10 or 12 months
•Doesn’t leave you with a big bill
•Competitive interest rates
•Completely unsecured
•Payment made directly to HMRC on your behalf, so you don’t have to worry
What should you consider?
It’s important to remember that bills to HMRC cannot be avoided. Failing to pay them can result in hefty charges and in the worst-case scenario HMRC can issue winding up orders if payments have been missed for a long time.
To avoid late payment charges, it’s always best to get in touch with a commercial finance consultant about Self-Assessment Funding as soon as you receive the bill from HMRC.
The only other thing you need to consider is how long you want to spread the facility across. You can choose to either pay it over 3, 6, 10 or 12 months, whichever suits your requirements.
What fees are involved
There are no fees payable on Self-Assessment Funding, you will just pay interest on the amount borrowed.
Examples of how it’s used
Self-Assessment Funding is easy to use, as a business all you need to do is send the tax bill to ABL who will sort out the rest for you. HMRC are paid directly so all you need to do is set up payments to the lender.