Understanding tax payment instructions

Hello I've worked out my self assessment and the final calculation page says (with made up figures but with correct multiples): "Estimated payment due by 31 January 2025 You must pay the total of any tax and class 4 NIC due for 2023-24 plus first payment on account due for 2024-25 by 31 January 2025 (Note: 2nd payment of £1000 due 31 July 2025) This amount does not take into account any 2023-24 payments on account you may have already made 2023-24 balancing payment £2000 1st payment on account for 2024-25 due 31 January 2025 £1,091.10 Total due by 31 January 2025 £3000" This is not plain english to me. Please can you explain to me with dates and amounts what I must pay and when? many thanks

Sorry "1st payment on account for 2024-25 due 31 January 2025 £1,091.10" should read 1st payment on account for 2024-25 due 31 January 2025 £1000"

Add to SA2350 

Hi n99,
Your balancing payment for 23/24 of £2000.00 is due to be paid by the 31st of January 2025.
Your first payment on account of £1000 for 24/25 is also due to be paid by the 31st of January 2025.
Your second payment on account of £1000 is due to be paid by the 31st July 2025.
Please see further guidance here:
Understand your Self Assessment tax bill
Thank you. 

 

Hi So £3000 due by the 31st of January 2025 and £1000 is due to be paid by the 31st July 2025? So £4000 would be paid to HMRC by 31st July 2025? If this is correct - would it be possible to 1) spread the £3000 due by the 31st of January 2025 into equal monthly instalments? So with this contrived example it could be £3000 over 6 months = £500 a month? or 2) spread the £4000 due by the 31st of July 2025 into equal monthly instalments? So with this contrived example it could be £4000 over 12 months = £333 a month? Option 2 would be better for us. Thanks

Hi,

If you are unable to pay the balance due as a one off payment, you can check if you can set up a payment plan here:

If you cannot pay your tax bill on time

Thank you.

Hello - this service looks like it charges interest on monthly tax payments. Do you have info on the rates charged?

Hi n99,
Please refer to: HMRC interest rates for late and early payments.
Thank you.

Which interest rate applies to the instalment arrangement?

Hi n99,
Please refer to the following link - HMRC interest rates for late and early payments
Thank you.

 

but will I have to pay the "repayment interest rate " or the "late payment interest rate"? If it is the "late payment interest rate" that feels slightly odd given that many of the instalments I make will not actually be late, considering the deadlines of 31st July 2025 and 31st of January 2025?

Hi,

You will not have to pay any late payment interest if the amount due by 31st January 2025, £3000, is paid by the 31st of January 2025. For more advice, please contact our Self Assessment payment team.

Self Assessment payment

Thank you.