Overview
If you are late in paying your income tax payment on account, due 31/07/2021 – don’t worry. There’s no penalty or fine – instead, normally, HMRC only charge you interest at 2.6%.
Tax returns for individuals
If your reading this, its probably because you have completed your tax return and your 31st July Income Tax payment is coming up. You can read more about Self-Assessment here.
Income Tax Payments
Tax is paid in three stages: There are two payments on Account (POA) and a third balancing payment. Consider for the tax year ending 5th April 2021
- The first ‘payment on account’ is due on 31 January 2021 and is the first half of the tax that HMRC thinks is due for the tax year ending 5th April 2020
- The second ‘payment on account’ is due six months later, on 31 July 2021 and is the second half of the tax that HMRC thinks is due for the tax year ending 5th April 2020
- The third ‘balancing charge’ is due 31 January 2022 and is any additional tax that needs to be paid
31 July is the deadline for the second payment
The second payment on account for the tax year ending 5th April 2020 is due on 31st July 2021.
If tax is paid late, HMRC will charge interest on any overdue tax. But HMRC won’t normally issue a penalty. Interest is charged at a rate of just 2.6%!
If you need help to fill in your tax return, we can help you – contact us!
Overview If you are late in paying your income tax payment on account, due 31/07/2021 – don’t worry. There’s no penalty or fine – instead, normally, HMRC only charge you interest at 2.6%. Tax returns for individuals If your reading this, its probably because you have completed your tax return and your 31st July Income […]