HMRC threatens bogus penalties
Correspondence from HMRC suggests there's a penalty if you don't pay your self-assessment tax bill by Saturday, 31 January. This isn't strictly true, but what are your options if you can't pay on time?
If you're signed up to receive reminders from HMRC about self-assessment, you'll have received several texts and/or emails about the filing and payment deadline, which is 31 January (this Saturday). The reminders may be helpful for some, but the scaremongering tactics are not. The most recent text begins with "Remember to pay by 31 January to avoid a penalty". Whilst the payment deadline is 31 January, it simply isn't true that you'll be charged a penalty if you don't pay on time. Whilst we don't advise missing the deadline, the fact is late payment penalties don't kick in until you're 30 days late as stated online.
However, you will be charged late payment interest, at 7.75% per annum. As far as interest rates go, this is eye-wateringly high, but if you need a few days to make the payment it isn't likely to break the bank. For example, if your tax bill is £3,000, the late payment interest charge is less than £4.50 per week.
If you're in real financial difficulty you should contact HMRC as soon as possible to agree a payment plan.
Related Topics
-
HMRC writes to non-domiciled taxpayers following rule changes
HMRC has begun issuing “one-to-many” letters to individuals affected by recent changes to the tax rules for non-UK domiciled taxpayers. The letters prompt recipients to review their tax position under the new regime. What does this mean if you receive one?
-
Can officers ignore minor input tax errors?
If your business has claimed input tax on an invoice where the supplier has charged VAT incorrectly, HMRC can disallow your claim by issuing an assessment. Can the officer waive that power to achieve a common sense outcome?
-
Practical guide: Tax-efficient will planning with residential property
An individual has a significant property portfolio which provides them with their sole source of income. They want to gift shares in some property to their daughter but retain the income. Can they do this without triggering the reservation of benefit rules?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.