The amount of interest charged for late tax payments increases in a few days.
The interest rate of on unpaid taxes will reach a 13-year high in a matter of days. Customers who do not pay their
taxes on time will incur a late fee of 4.25%.
HMRC stated: Most personal taxes.
These include income tax, national insurance premium, capital gains tax, stamp duty and inheritance tax.
Tax increases will be implemented.
new interest rates are also up 1.5 percentage points year-to-date. .
The late interest for January was 2.75%.
You are responsible for any late fees from the due date to the date he receives payment by HMRC. .
How is the late interest rate calculated?
HMRC links the rate of late charges to the Bank of England base rate.
LInterest expense is set at the base interest rate plus 2.5%.
Projected to reach 13% by year end .
How to avoid expensive fees
New late fees The best thing you can do to avoid is to make sure you pay your taxes on the due date.
Repayment interest will only be charged if repaid on time. This is 3.5 percentage points lower than late payment charges.
What to do if you are unable to pay immediately
Contact HMRC and tell them you are having difficulty paying Problems . They may allow you to spread out your payments. The agreement may allow the tax to be paid over time or the tax to be paid in installments.
It's better to do this than to bury your head in the sand.
HMRC can be contacted online or by phone on 0300 200 3300. }
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
