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Tax Payments
SKV_3
Posts: 4 Newbie
in Cutting tax
I currently owe the tax man around £4K for 2005-2006 (I'm self employed). My question is, is it cheaper to pay the tax man interest by paying in instalments or to pay him off with a loan or overdraft and pay that instead. I don't yet have a loan or overdraft so would obviously shop for the best deal as outline on this site. Any help appreciated. Thanks 
0
Comments
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Interest is currently 7.5% annually, added daily. The interest on £4,000 will be 82p per day. Obviously the more you pay off the outstanding amount, the less the interest will be. There will also be a 5% surcharge on the amount outstanding 28 days after the due date (so an extra £200 if £4,000 is outstanding on 28 February), with a further 5% surcharge added on 31st July.
Interest will accrue automatically but the surcharges can be avoided if you can agree a payment plan with the accounts office on 0845 366 1204.Quidco savings: £499.49 tracked, £494.35 paid.0
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