You have to pay your tax bill by 31 January each year for the tax year ending 5 April beforehand. So you have 9 months to settle up.
There are a few ways to pay to your self-assessment which are explained on the Gov website. Paying with Coconut there are two main options:
1. Pay by Card
You can pay your tax bill online here. There's some important things you should know first.
You'll be asked to select what type of card you're paying with. The Coconut card registers with HMRC as a Mastercard corporate credit card (because it's a commercial prepaid debit card and the merchant - HMRC in this case - pays similar fees to process these types of card payments).
HMRC have chosen to apply fees on this corporate cards, which will be applied when you pay.
We recommend paying by bank transfer instead.
2. Pay by Bank Transfer (recommended)
You can pay by bank transfer from your Coconut app free of charge to HMRC. The account details can be found on HMRC's website here.
You'll need to include your 10 digit Unique Taxpayer Reference (UTR) followed by the letter "K". You can find your UTR on your paper statements from HMRC and also through your online account if you have one set up.
Payments are made by Faster Payments so will usually reach HMRC within 1 to 2 hours.
3. Other ways to pay
There are a few other ways to pay too:
- Set up a Direct Debit - you can do this through your HMRC online account
- Set up a Budget Payment Plan - when you set up a Direct Debit, there's the option to make voluntary payments in advance to help with your budgeting.
If you can't afford to pay your tax bill in time, it's worth checking in with their Business Payment Support Service. They are sometimes able to arrange payment plans if you're unable to pay.