Do I have to pay the 80p I owe HMRC

lolly5648

I have just done my tax return online and it says I owe 80p and to pay it by 31 Jan. Can I ignore this or will they chase it or fine me?

Mrsn

I know it’s such a tiny amount but I feel sure that they will chase you for this and will fine you for not doing so in accordance to their rules.

Just best not to risk it really

Dazed_and_confused

If that is all you owe on your Self Assessment account then they won't chase you for it or fine you for late payment.

They will however be entitled to charge you late payment interest. HMRC's current interest rate is 3.25% so if you left it until 31 January 2021 before paying it then you could expect an interest charge of two or three pence.

Sea_Shell

The devil in me would say pay them £1 (if the system lets you) and see if they send you a cheque for the difference!!

BoGoF

Sea_Shell wrote: »

The devil in me would say pay them £1 (if the system lets you) and see if they send you a cheque for the difference!!

They wouldn't.....not automatically anyway.

There would be a 20p credit on the account.

If they want you to pay it they will send a statement. There will be no penalty on 80p and, as above, any interest will take a while to be even a penny.

anniecave

I would pay them exactly 80p via bank transfer, then you know it's paid up.

kuratowski

Genuine Question: Is it possible to amend the return and request the underpaid tax to be collected through your tax code? Asking for a technical expert. I know amending a return is possible, and that collecting through tax code (up to a limit), I am asking specifically about the combination.

I do a SA return every year and usually it's tens or hundreds of £, in which case I prefer to pay up front and keep my PAYE income relatively stable, but in case it's a very small amount would be useful to know.

Dazed_and_confused

Yes but not now, you would be too late as the return (or amended return) has to be filed by 30 December for the tax to be included in your tax code.

If you met the deadline it may be it doesn't happen automatically and you might have to contact HMRC (before the 6 April) to get them to adjust your Self Assessment account and forthcoming tax code.

FtbDreaming

Why wouldn't you pay? 80p is nothing so why potentially cause yourself hassle with HMRC?