How To Use PAYE Tax Code To Pay Your Self-Assessment Bill

Do you think only self-employed people have to file their self-assessment? If so, its time to burst your bubble. Any person whose earnings fall outside the PAYE system has to manage their taxes before the end of the tax year. But, keeping track of all the necessary paperwork can be tiring and challenging at the same time. To solve this issue, make use of the HMRC taxcalculator to calculate your taxes and avoid those hefty late fines. In addition to using the tax calculator, paying self-assessment bill can become easy by using the PAYE tax code. But, before using the PAYE tax code, you must be aware of certain conditions that make you eligible to use the tax code.

Criteria For Using The Tax Code

·        To be eligible to use the tax code, your tax bill should be less than £3,000.

·    You must be paying tax through the PAYE system, either being an employee or by receiving a company pension.

·         You have to submit your paper tax return by 31 October or your online tax return by 30 the December.

If all these conditions apply to you, then tax will be deducted from your salary or pension in equal installments.

Benefits Of Using The PAYE Tax Code

There are multiple cash flow benefits of using the PAYE tax code. In addition to this, using the PAYE tax code, you will streamline your entire payment process. If you meet all the above conditions of qualifying for the tax code, HMRC will automatically how much tax you owe. PAYE code allows you to pay back your bill through the monitored monthly installments.

When To Submit Your Self-Assessment?

You have to submit your self-assessment by 30 December online. As far as the paper tax return is concerned the date for submission is 31 October. You can use the salary calculator to calculate your tax deductions and file the self-assessment on time.