Balancing Payment and Payment on Account

devsen

Hi,

I have to pay a balancing payment for my self-employed income for 2019-2020 and payment on account for 2020-21. I have set up two Direct Debit payments. One to pay the balancing payment a week before the deadline and the second one a budget account meant to pay the payment on account in monthly instalments with the monthly instalements designed to pay the full payment on account by mid-Jan 2022.

Is this OK? I won't be charged any interest as I am not paying the payment on account in two lumps sums?

Thanks for ny adivice - Dev

Dazed_and_C0nfused

You will be charged interest on the late payment of the payment on account.

But it is a low rate (3%?).

Same applies to the second POA due in July if you are including that in the payment plan.