Paying your tax late this year will cost over double interest charges as HMRC’s official interest rate has gone from 2.75% to 6% in the last 12 months, says leading tax and advisory firm, Blick Rothenberg.
Nimesh Shah, CEO of the firm, said: “HMRC’s latest statistics confirm that 5.7 million tax returns are yet to be filed, with less than a month to go. But unlike the last two years, the 31st January deadline is unlikely to be extended this year, and those that pay late will get some unpleasant bills.
Nimesh added: “The number of people who have yet to file their tax return is the same as last year. But last year, HMRC gave an extra month for people to file their returns without receiving a late filing penalty – some 2.3 million people took advantage of it last year.”
“If the same number of people fail to file their returns on time this year, HMRC can expect to levy £230 million worth of £100 late filing penalties. In addition, paying tax late this year will cost over double interest charges as HMRC’s official interest rate has gone from 2.75% to 6% in the last 12 months.”
“People who haven’t yet filed their 2021–2022 tax return should aim to get this done as soon as possible to avoid late filing penalties and interest. They need to get organised and gather the information they may need. They may also need to request outstanding information from their bank, pension provider or an employer, so they should act now.”