Penalty for late payment-on-account self-assessment tax
Discussion
My second payment-on-account for the tax year 2009/10 is due at the end of this month (31/7/10). I would like postpone the payment for a month or two and was wondering what penalty the HMRC will impose in such case.
I've done a bit of searching around on the 'net and think that they will only charge me interest on the amount for the one or two months delay? Is this correct? What interest rate will they charge me?
Thanks,
Quyen
I've done a bit of searching around on the 'net and think that they will only charge me interest on the amount for the one or two months delay? Is this correct? What interest rate will they charge me?
Thanks,
Quyen
Correct - no penalty, only interest
The current rate of interest on late paid Income Tax ios 3%.
You might want to notify HMRC in advance that you cannot meet the full liability on the legal due date. They prefer to be told these things in advance.
They would also like you to let them know when you intend to clear the liauility.
You do know that you have the option of reducing the Payments omn Account to lower amounts (even to Nil) if you know that your true tax liability for the year is going to be lower than last year's?
The current rate of interest on late paid Income Tax ios 3%.
You might want to notify HMRC in advance that you cannot meet the full liability on the legal due date. They prefer to be told these things in advance.
They would also like you to let them know when you intend to clear the liauility.
You do know that you have the option of reducing the Payments omn Account to lower amounts (even to Nil) if you know that your true tax liability for the year is going to be lower than last year's?
Eric Mc said:
Correct - no penalty, only interest
The current rate of interest on late paid Income Tax ios 3%.
You do know that you have the option of reducing the Payments omn Account to lower amounts (even to Nil) if you know that your true tax liability for the year is going to be lower than last year's?
Thanks Eric for the prompt and informative reply as ever.The current rate of interest on late paid Income Tax ios 3%.
You do know that you have the option of reducing the Payments omn Account to lower amounts (even to Nil) if you know that your true tax liability for the year is going to be lower than last year's?
3% is very cheap, perhaps I should "borrow" the payment-on-account for a bit longer!
Unfortunately (or fortunately depending on how one view it) my true tax liability is not going to be lower than predicted so, one way or another, I'll have to pay it by Jan 2011.
Jnuary 2011 would be the absolute latest they would allow you to pay. And don't forget, on 31 January 2011 you not only need to clear the final 2009/10 Payment on Account, you also need to pay any balancing amount due for 2009/10 PLUS the 1st Payment on Account fo tax year 2010/11.
So, you need to start planning to put money aside NOW as its's only six months away.
So, you need to start planning to put money aside NOW as its's only six months away.
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