Taxpayers have been warned to settle their tax bills by 31st July or risk incurring late payment interest at 8.25%, as HMRC intensifies its crackdown on unpaid liabilities.
The alert comes from Blick Rothenberg, a leading audit, tax and business advisory firm, which says taxpayers who have yet to pay their second payment on account for the 2024/25 tax year must act quickly to avoid financial penalties.
“From May 2022, HMRC increased late payment interest from 3.5% to 8.25% as part of their agenda to crack down on people that owe tax,” said Tom Goddard, Senior Associate at Blick Rothenberg. “People who owe money for the 2024/25 tax year must pay their bill as soon as possible.”
What are payments on account?
Payments on account are advance payments made towards the next year’s income tax bill, calculated based on a taxpayer’s previous year’s liability. They are paid in two instalments — one by 31st January, and the second by 31st July.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
