So this is a question I get asked a lot so I thought I’d write a quick blog about it.
If you’re self-employed can you pay your tax bill through the PAYE system? The simple answer is yes, but as with all things HMRC-based there’s some rules:
1) You must be self-employed and in standard employment, where you are earning an income and paying your monthly tax through PAYE
2) You don’t owe more than £3000 in tax
3) You have submitted your paper tax return before 31st October or your online tax return online before 30th December
If these three things apply to you then you are eligible to pay your tax bill through PAYE – it’s as simple as that!
If not, then unfortunately you’ll have to pay the lump sum at the time of HMRC requesting it. If you’re new to being self-employed then my suggestion is always to have a completely separate bank account where you transfer 20% of each income you are paid from your business account (after your expenses). This way your tax fund gradually builds up throughout the year and your tax bill will be covered when it comes time to pay.
I hope that helps and if you want anymore information just contact me at email@example.com
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