The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Individuals are required to pay any outstanding income tax, Class 2 and Class 4 national insurance and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK resident individuals who dispose of residential UK property will be required to make a payment of capital gains tax within 30 days of completion. This applies to non-resident individuals in relation to disposals or UK property (whether or not this is residential property) from 6 April 2019. See the Disposals of UK land ― capital gains tax compliance regime guidance note.
For those who were required to notify HMRC of their chargeability by 5 October after the end of the tax year but did not receive a notice to file a tax return until after 31 October, this payment deadline is extended. The taxpayer has three months to file the tax return and pay the tax due. There was an interesting tribunal case on this point, which is discussed in the article ‘Do not pay £200’ by Mike Truman in Taxation, 13 May 2010, 22.
Missing the payment deadline means interest and penalties can become due. See the Interest and penalties on late paid tax under self assessment guidance note.
It is not possible to offset one year’s tax refund against another year’s tax liability (eg a refund that will become due for 2020/21 cannot be used to settle a 2019/20 tax liability), but if there is a credit on the self assessment statement of account, this can be used to cover a later liability. A credit on the statement could be due to an unclaimed tax repayment for an earlier year or an earlier payment made in excess of the amount actually due.
For details of when a tax payment can be collected via the taxpayer’s PAYE tax code, see the Collection of tax underpayments
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