Any Unpaid Income Tax?
Interest and penalties are starting to accrue.
As we have now gone past the self assessment filing deadline of the 31 January 2020 you will need to ensure that you have paid your tax due so that you do not get a late payment penalty.
If you have any unpaid income tax from your tax return for the year to the 5 April 2019 you will currently be accruing interest on the amount outstanding.

However, in addition to any interest that may arise on tax paid late there is also a scheme of surcharges to encourage prompt payment.  A surcharge is payable in respect of any tax (including capital gains tax or student loan repayments) which is shown as due in any self assessment calculation (whether the return is filed or not).

The surcharge is also payable on any Class 4 NICs unpaid as if it were income tax charged.

The initial surcharge is 5% of any tax unpaid after 29 days.

In other words if you have any tax from self assessment that is still outstanding after the 29 February 2020, you will not only be charged the interest on this you will also be charged an additional 5% of the amount outstanding.

Anybody who is struggling to pay their income tax should not just ignore it, always get in touch with HMRC and discuss any payment plan options with them to see how they can help.

Get in touch - If you'd like to find out more about how we can help you and your business pay less tax, generate more profits and create long-term wealth for you and your family, please get in touch now