Interest rate is currently 7.5% if you pay your second payment on account for 2022/23 late
Interest rate is currently 7.5% if you pay your second payment on account for 2022/23 late, which is due 31st July 2023
Most taxpayers who file self-assessment tax returns have to make two interim payments of their tax bill. The first in January of the tax year to which it relates, and the second in July, with the balance due by 31 January the next year.
The second payment on account for 2022/23 falls due on 31st July 2023.
For many years interest rates have been low, so late payment interest charges have been modest. That has changed. If you fail to pay by the deadline, HMRC will charge interest at 7.5%. he rate is set at 2.5% above the Bank of England base rate, which is currently 5%, although further increases cannot be ruled out.
Your payments on account for 2022/23 are based on your liabilities for 2021/22. If you believe that your income was substantially less in 2022/23 than in the previous tax year, you have an option to ask for the payments on account to be reduced, but interest will be charged if your actually liability turns out to be more than the estimate.
Ways to pay your tax can be found on gov.uk.
Please contact us with any questions or concerns.