Self assessment interest

BalanceTransferDude

Hi all. I've scoured the internet but can't seem to find an answer. I have a self assessment payment due of £3000. With the penalty fee for paying late delayed as long as full payment is made by 1 April 2022 can someone help with how much interest I would have to pay if say I paid by the end of March? Is it 2.75% annual interest and therefore about £14 or is it daily interest so a lot more than that?

I ask because whilst I can pay by the end of January I've got a big payment due out by the end of the month so delaying would help me out hugely, provided the interest to pay is minimal. 

Thanks!

Jeremy535897

See https://www.moneysavingexpert.com/news/2021/02/even-if-you-ve-not-filed-your-tax-return-yet--you-should-have-pa/

The article applies just as much now as it did then.

BalanceTransferDude

Jeremy535897 said:

See https://www.moneysavingexpert.com/news/2021/02/even-if-you-ve-not-filed-your-tax-return-yet--you-should-have-pa/

Thanks. That's last year so 2.6% per annum which means if I go by that then this year it will be 2.75% per annum too which is not too much interest to pay if I delay paying by a couple of months. 

Jeremy535897

Yes, the rate went up slightly from 4 January 2022. Note the additional 5% late payment penalty from the beginning of March. You would be best explaining in advance that you need a bit more time to pay, and agreeing a payment plan

BalanceTransferDude

Jeremy535897 said:

Yes, the rate went up slightly from 4 January 2022. Note the additional 5% late payment penalty from the beginning of March. You would be best explaining in advance that you need a bit more time to pay, and agreeing a payment plan

Yeah thank you. They've said the late penalty is delayed as well until 1 April this year so I'll pay off the total amount in the last week of March. 

[Deleted User]

Here it is:

• anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

Dazed_and_C0nfused

You can estimate the charges here although it hasn't been updated for the 1 April late payment penalty date yet.

https://www.gov.uk/estimate-self-assessment-penalties

BalanceTransferDude

Dazed_and_C0nfused said:

You can estimate the charges here although it hasn't been updated for the 1 April late payment penalty date yet.

https://www.gov.uk/estimate-self-assessment-penalties

Thank you. Just done that and if the same rules are applied from last year but with the slight increase in interest and longer delay for penalities then that is so helpful to me. Really appreciate all the responses!

Jeremy535897

That's very generous of HMRC to extend the late payment penalty date to April. I hadn't seen that.