How Much Interest does HMRC charge on Late Payment of Personal Tax?


With the deadline for making your Self Assessment Payment on Account looming (31 July), you may be wondering what happens if you make your payment late.

Well apart from lots of reminders, HMRC will apply interest to the outstanding amount from 1 August.  Currently this is 2.75% (see more here).

If you do feel you may be late with your July Payment on Account is is advisable to get in touch with HMRC sooner rather than later to arrange a payment plan. Give HMRC a call to try and arrange instalments.

If your circumstances have changed, for example you are no longer self employed and have taken on a full time position you can apply to reduce your payments on account.

Read more about reducing payments on account here.


Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.