What would happen if I was late with my January payment......by one day? Is there an automatic fine or would I just be hit with interest?
Because January 31st is on a Sunday it looks as though I may not have enough money in my bank account until the Monday. I could pay by credit card but they are hammering me just now with interest so trying to avoid using that card (no c/c spending since August).
I'm currently paying towards the bill by weekly direct debit in advance but I never found out about that until fairly recently. I'm getting more and more of my spending onto monthly direct debits rather than hit with them in one go. If there is no fine I'l just delay it for the day but if there is a fine I'll need to pay by c/c.
Prior to August I had devoted a ridiculous amount of time to helping my local football club and let my on personal things get into a bit of a mess - fortunately I now have my life back and am trying to get things sorted out.
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Never buy black socks from a normal shop. They shaft you every time.
surely if you were going to pay it on the Monday you could pay by credit card now and then put the money that you would have paid for the self assessment with as your credit card payment for February?
Your no better off but your no worse off either.
I wouldn't bank of the revenue showing any leniency at the moment as they seem to be after every penny that they can get.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
That is great to hear that you are managing to sort your own life out now.
As far as I now (and I would prepare to be corrected) I think you would be hit with a fine of £100, the revenue don't care what day of the week the 31st fall on as they want all of us filing and paying well before then.
Whilst I would never wish to tell you how to pay your bills would the interest on your credit card for the tax you will be paying be more than the £100 penalty levied by HMRC (no need to answer the question, just my thoughts)
Am I wrong but the fine of £100 is for not filing your SA on time. The fine for not paying is a surcharge of5% on the unpaid tax and then interest per day on top???
And I'm a three toed sloth compared to Phillip of the back office group!... Actually I think three toed sloth was was one of the more pleasant references that my ex wife used for me as well.
I'm beginning to feel a bit like a vulture hanging around this site.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I agree with Phillip on the revenue's approach hence my suggestion that you pay by card now and then use the money that you would have paid to the revenue when you get paid to pay your credit card.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If there's a fine that's what I will be doing. But I'm trying to completely avoid using my credit card. I once lodged £10 into Skybet to make some fun bets (maximum 50p - in fact, I haven't even got round to making the bets and that was probably over a year ago). My credit card treated that as a cash advance so payments towards that part of the bill are taken off last. So a year or so later that part of my bill id £10.21 - they add 21p interest every month and then take 21p off in payments towards the whole bill.
Last July's payment I didn't make on time and didn't pay it until October and I just got hit with interest.
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Never buy black socks from a normal shop. They shaft you every time.
This is now your turn to correct me, i misread and misunderstood the op. I read it as though the filing would be late not the payment. So I sit corrected.
Peasie, my apologies Philip is correct about the surcharge and interest on unpaid tax
Regards
Mark
-- Edited by Marky65 on Wednesday 13th of January 2010 03:43:17 PM
Am I wrong but the fine of £100 is for not filing your SA on time. The fine for not paying is a surcharge of5% on the unpaid tax and then interest per day on top???
P
I'm sure there were court cases when self-assessment was first brought in. People could not be fined £100 if the tax due was less than that amount. I thought that was for late filing of returns - although thinking about it that seems wrong as someone that had £50 tax to pay would not need to ever fill in a return.
My return has been filed on time.
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Never buy black socks from a normal shop. They shaft you every time.
Credit cards are always geared towards profit maximisation.
The sequence for most cards on reducing the balance is :
interest Purchases UK Cash Advances Foreign Cash Advances
If cash advances have been taken at different rates they will always reduce the one bearing the least interest for them first.
For UK bank underwritten cards funding of gambling (except for the lottery which is recognised as a charity (Yer right!)) is taken as a cash advance.
If you are offered a zero or low interest cash advance they just add the interest by front loading it as a fee (normally 3%) then try to ensure that you don't pay this off before the interest free period expires.
In the scenario that you spoke of using your card will not change matters as you will be paying out and in exactly the same figures equating to an overall zero movement.
As the balance will not have been reduced to zero dependent upon your card you will probably find that you still pay interest on the payment for it's duration so I would keep payment as close as possible to the actual filing date... But not too close in case there are problems with the revenue's system.
hope that this helps,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
in reality I don't think it would make any difference if you were a day late, a few days maybe but 1 day, surely not.....but then again who knows.....theres only one way to find out....
Shaun, were you getting me confused with Marky?!?! I'm confused myself.
I've just checked the website and the charge for using a credit card is 1.25%
Take a look at http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm#6
I know that it's no longer applicable in this case but if you make the return by the 30th of December and you owe less than £2000 you can also choose to pay via a reduction of your tax code.
cheers,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The taxman has said the 31 January deadline for online self-assessment will not be relaxed because it falls on a Sunday.
HMRevenue & Customs is expecting the number of taxpayers filing online to top the record 5.8m who logged on last year, but has remained firm on the cut-off point of 11.59 pm on the day.
Those who file after this time will take a £100 penalty plus interest on late payments.
"There's no real reason it can't be done online," said a spokesman today. Earlier this week, Grant Thornton tax experts urged people not to wait until the last minute to file, warning HMRC's website had been known to crash under heavy traffic.
Which should clarify the situation this year.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I might not even get a surcharge - just the interest for one day if I've read this bit correctly (and hopefully I'm not quoting something 6 or 7 years ago). The form has been submitted - just not yet paid.
Late payment - interest and additional charges
If you pay your tax late HMRC will charge interest from the date the tax was due until your payment is received.
If you still haven't paid your balancing payment (due on the 31 January) by 28 February, you may be charged a 5 per cent additional charge, called a surcharge, on top of the amount you still owe. This is in addition to any interest you've been asked to pay.
If you still haven't paid all of the tax due on 31 January by 31 July, you may be charged a second 5 per cent surcharge on top of the amount you still owe.
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Never buy black socks from a normal shop. They shaft you every time.
The way that the countries been bankrupted by the incumbent idiots I suspect that they're looking to harvest every penny that they can. The fact that they specifically go down to mentioning 11:59 p.m. makes me think that the government is regarding February the 1st as Christmas morning! (so expect the computer systems to go down on the preceding Friday night).
Although as you state you're going to be safe from the surcharge, I'm pretty sure that in doing your calculations you really should factor in the £100 penalty as well as the interest... Gordon and Alistair will have!
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
