Should I wait for HMRC to send me a notice before I pay my tax over (it’s a big bill and I don’t want to get anything wrong)?
No – don’t wait, make sure your payment is made by 31st January, whether or not you have received a statement from HMRC.
If the payment is late, for any reason, you will start accruing interest daily on any balances unpaid, from 1st February onwards. The current rate of late payment interest, at the time of writing, is 7.25%.
Late payment penalties (under current rules) apply if your balancing tax payment is more than 30 days late, then there are further penalties if any payments are more than 6 months late, 12 months late and so on. (Each penalty is typically 5% of the unpaid balance up to 12 months late, then they start to get higher).
If you know the amount to pay, and can pay it, refer to HMRC’s payment instructions, use the correct reference (which will be your UTR+capital’K’). And check your banking transfer limits, as you can’t always pay in one go! If you can’t settle the whole of your liability by the deadline, talk with HMRC (make a ‘Time to Pay’ arrangement). It won’t stop interest accruing, but it will prevent penalties from being charged, and it will keep you on the right side of HMRC!
If you have any questions or would like advice, get in touch with our team of experts on 01424 730345 or email bexhill@honeybarrett.co.uk and they will be happy to help.
