Can someone help me understand my tax calculation?

macman

Any tax due for 19/20 must be paid by midnight on 31/1/21. So wait for the return to process: the deadline is still 5 days away.

Jeremy535897

macman said:

Any tax due for 19/20 must be paid by midnight on 31/1/21. So wait for the return to process: the deadline is still 5 days away.

29 January realistically as 30 and 31 January are the weekend.

macman

To be safe, sure, but assuming you use either Faster Payments or a debit card several hours before the deadline, the transaction should still hit HMRC's  account before the midnight cut-off?

Having said that, I wouldn't cut it that fine (I paid mine a week ago)

icicat

Ok cheers guys. Looking at my account money owed still says 0.00 so must be still processing. I want to get this paid in asap as it feels like a huge weight at the moment. I really wish I was a bit smarter and paid into a private pension to get back some of that amount. I also found out my pay was raised this year so maybe I will start putting more away into my work based pension from my PAYE salary. I might also open up a private pension for my self employment work.

icicat

Apologies for dragging this thread up again guys though feeling a little distressed. I payed my balance to HMRC yesterday morning, though looked at my account and it's still saying I owe them the balance?! Is this normal as I'm assuming the money takes a day or so to clear? It says pay by 11:59pm on 31 January 2021, so am I in the clear as I've got proof that I payed it in before then? Stressful stuff

Dazed_and_C0nfused

Don't think you have given it enough time yet to show on your Self Assessment account.

icicat

Ok thanks. If it still doesn't show by Monday would I get fined? Or is this something on their part as I have paid a few days before the deadline?

Dazed_and_C0nfused

If you have paid it (before March) you won't be fined.

There may be an interest charge for late payment (3%/year?) but if you have paid it you really don't need to worry.

[Deleted User]

Couple of people on here very stressed over non-existent fines. There are no fines on late payments of tax. However, a 5% surcharge will be levied on 28th February but only on the amount owed by way of balancing payment for 2019/20 - NOT on the first payment on account for 2020/21.

macman

Dazed_and_C0nfused said:

If you have paid it (before March) you won't be fined.

There may be an interest charge for late payment (3%/year?) but if you have paid it you really don't need to worry.

Currently 2.6%.