HMRC issues major tax update for thousands of UK households and it starts next week HMRC is reducing the interest it charges on late tax payments after the Bank of England cut its base rate last week.
Seb Maley, CEO of tax insurance firm Qdos, said: "Good news on one hand – that those who weren’t able to pay their tax bill on time last month will pay less interest on the amount they owe in tax.
Along with being hit by interest rates as high as 7% on outstanding tax bills, the longer a tax bill remains unpaid, the higher the chances are that HMRC will take a closer look and potentially investigate.".
You must also pay any tax due by January 31 - or you’ll accrue 7.25% interest, reducing to 7% from February 17, on any late tax payments.
This means the roughly 1.1m self-assessment taxpayers who missed the recent January 31 tax deadline will have to pay less in interest on the amount of money they owe.
