Self-assessment taxpayers who fail to pay by 31 July could face interest charges as high as 7.5%
Self-assessment taxpayers should do their best to pay their self-assessment charges for payment on account by 31 July to avoid getting hit with HMRC penalty charges that are set above the Bank of England base rate.
Unlike when filing your annual tax return late, there is no £100 fine for being late in July, but interest is charged on the amount owed. At the time of writing that stood at 7.5% since HMRC sets the penalty at set at 2.5 percentage points above the Bank of England base rate. It may increase further when the base rate is reviewed again in August, reported Which?
If you think you will not be able to pay for tax bill do not avoid the HMRC, speak to them and see if you are eligible for a payment plan. Check out our report, What to do if you can’t pay your tax bill on time.
For more information go to Understand your Self Assessment tax bill: Payments on account – GOV.UK or watch the videos below.