Monday, 24th February 2020
We all know that interest is charged on payments that are made after the initial due dates. But did you know that HMRC will also apply a surcharge when the tax payment is made after a specific date?
Surcharges for the Late Payment of Tax
If you haven’t paid your tax bill yet then do it now to avoid the first of many surcharges. You have until the end of February to make your payment otherwise a 5% charge will be levied on the tax that you owe.
If the payment has not been made within 6 months of the original due date, then an another 5% charge will be levied on the tax owed on that day.
If the payment has not been made within a year of the payment due date, there will be an additional 5% charge levied on the tax owed on that day.
HMRC will also charge interest on all outstanding amounts at the late payment rate. The rate is currently 2.75%.
Penalties and Surcharges for Inaccurate Tax Returns
Was your tax return submitted with wrong information resulting in an inaccurate Income Tax and/or National Insurance Contribution amount? If it was then you may be charged a penalty for this too!
The amount of the penalty depends on whether the error was a genuine mistake, whether it occurred because of a lack of reasonable care, deliberate or deliberate and concealed.
Where the tax return was intentionally completed with incorrect information, this will be treated as a serious offence. The penalty charge will also be significantly higher and in certain circumstances, may lead to prosecution.
You may be able to appeal HMRC’s decision to levy surcharges on late payments of your tax liabilities. Contact the tax team at Onyx to find out more information.
We are here to help!
At Onyx we can help advise you if you have substantial tax arrears and penalties and cannot pay them.
If you have any queries, or want to discuss further, please give us a call us or e-mail us at firstname.lastname@example.org for a FREE no obligation consultation.
GET IN TOUCH WITH ONYX
Got any questions or queries? Our friendly team of tax specialists are happy to help. Just drop us a line! Call us on 0121 753 5522 or 01902 759 800.