HMRC SA payment by 31st January 2021 - Sunday?

fleemkt

Silly question this, but if I filed my return in the next few days but initiate a bank transfer on Sunday 31st to HMRC, will that payment be deemed as having been received by HMRC on the 31st or the next working day - Mon 1st Feb?

Jeremy535897

fleemkt said:

Silly question this, but if I filed my return in the next few days but initiate a bank transfer on Sunday 31st to HMRC, will that payment be deemed as having been received by HMRC on the 31st or the next working day - Mon 1st Feb?

Internet transfers take place on the next working day, so I would do the transfer on Friday 29 January 2021

[Deleted User]

I wouldn’t think the interest accruing would be significant if the payment is one day late 

Jeremy535897

[Deleted User] said:

I wouldn’t think the interest accruing would be significant if the payment is one day late 

The official rate is 2.6% per annum, and there are also late payment penalties starting on 1 March.

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

I wouldn’t think the interest accruing would be significant if the payment is one day late 

The official rate is 2.6% per annum, and there are also late payment penalties starting on 1 March.

Indeed. On the balancing payment only a 5% surcharge is applied. At 2.6% the interest, for the op, would work out at 7p per day per £1000 owed.

Jeremy535897

[Deleted User] said:

Jeremy535897 said:

[Deleted User] said:

I wouldn’t think the interest accruing would be significant if the payment is one day late 

The official rate is 2.6% per annum, and there are also late payment penalties starting on 1 March.

Indeed. On the balancing payment only a 5% surcharge is applied. At 2.6% the interest, for the op, would work out at 7p per day per £1000 owed.

If OP is doing better than 2.6% net on wherever the money is paid from, I would be very surprised. Unless the money isn't there (in which the best thing to do is get a payment plan now), I would say pay it on 29 January.

fleemkt

Appreciate your comments everyone.

I think I'll sort payment for Friday 29th.  Just that 1st would have been more ideal from a cashflow POV.

[Deleted User]

fleemkt said:

Appreciate your comments everyone.

I think I'll sort payment for Friday 29th.  Just that 1st would have been more ideal from a cashflow POV.

Jeremy is completely correct in everything he says. However, if the cash flow repercussions outweigh one days interest at 2.65% per annum (7p per 1000) I know what I would do. There are NO fines for paying one day late.

Jeremy535897

[Deleted User] said:

fleemkt said:

Appreciate your comments everyone.

I think I'll sort payment for Friday 29th.  Just that 1st would have been more ideal from a cashflow POV.

Jeremy is completely correct in everything he says. However, if the cash flow repercussions outweigh one days interest at 2.65% per annum (7p per 1000) I know what I would do. There are NO fines for paying one day late.

That's why I said "unless the money isn't there".