Need a solution for paying tax to HRMC

sterling30

Thanks for all your help. I'll use the Curve card and a 0% card. HMRC can have their money in full.

born_again

sterling30 said:

Thanks for all your help. I'll use the Curve card and a 0% card. HMRC can have their money in full.

Just remember you may have a transfer free on a balance transfer.

Dazed_and_C0nfused

Not sure quite where the 3% has come from, it's currently 6.0% and is increasing to 6.5% shortly.

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

The most important deadline is the end of the month, if you haven't paid by then a late payment penalty can be charged.  Currently 5% of what's unpaid.

https://www.gov.uk/government/publications/self-assessment-appeal-against-penalties-for-late-filing-and-late-payment-sa370/self-assessment-how-to-appeal-against-penalties-for-late-filing-and-late-payment

MrFrugalFever

I would also be wary of your transaction to HMRC being classed as a ‘cash-like’ transaction which is often 2.99% of total amount paid, UPFRONT.

You haven’t said what the amount is that you owe but it appears that you have very limited options.

MattMattMattUK

Dazed_and_C0nfused said:

Not sure quite where the 3% has come from, it's currently 6.0% and is increasing to 6.5% shortly.

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

The most important deadline is the end of the month, if you haven't paid by then a late payment penalty can be charged.  Currently 5% of what's unpaid.

https://www.gov.uk/government/publications/self-assessment-appeal-against-penalties-for-late-filing-and-late-payment-sa370/self-assessment-how-to-appeal-against-penalties-for-late-filing-and-late-payment

3% applies if you agree a Time to Pay deal as it is classed as a repayment, if you do not pay and do not have an agreement in place then the 6/6.5% applies.

razord

MattMattMattUK said:

Dazed_and_C0nfused said:

Not sure quite where the 3% has come from, it's currently 6.0% and is increasing to 6.5% shortly.

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

The most important deadline is the end of the month, if you haven't paid by then a late payment penalty can be charged.  Currently 5% of what's unpaid.

https://www.gov.uk/government/publications/self-assessment-appeal-against-penalties-for-late-filing-and-late-payment-sa370/self-assessment-how-to-appeal-against-penalties-for-late-filing-and-late-payment

3% applies if you agree a Time to Pay deal as it is classed as a repayment, if you do not pay and do not have an agreement in place then the 6/6.5% applies.

3% is if HMRC owe YOU money, not if you owe them money.

If you take a time to pay deal, the interest rate is 6% (->6.5%)

The repayment interest rate compensates taxpayers fairly, when they overpay or pay early, for loss of use of their money.

Dazed_and_C0nfused

MattMattMattUK said:

Dazed_and_C0nfused said:

Not sure quite where the 3% has come from, it's currently 6.0% and is increasing to 6.5% shortly.

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

The most important deadline is the end of the month, if you haven't paid by then a late payment penalty can be charged.  Currently 5% of what's unpaid.

https://www.gov.uk/government/publications/self-assessment-appeal-against-penalties-for-late-filing-and-late-payment-sa370/self-assessment-how-to-appeal-against-penalties-for-late-filing-and-late-payment

3% applies if you agree a Time to Pay deal as it is classed as a repayment, if you do not pay and do not have an agreement in place then the 6/6.5% applies.

Have you got a link explaining that?

Seems a bit odd that HMRC will pay 3% on overpaid tax and, in certain circumstances, only charge the exact same rate on underpaid tax.

razord

Dazed_and_C0nfused said:

MattMattMattUK said:

Dazed_and_C0nfused said:

Not sure quite where the 3% has come from, it's currently 6.0% and is increasing to 6.5% shortly.

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

The most important deadline is the end of the month, if you haven't paid by then a late payment penalty can be charged.  Currently 5% of what's unpaid.

https://www.gov.uk/government/publications/self-assessment-appeal-against-penalties-for-late-filing-and-late-payment-sa370/self-assessment-how-to-appeal-against-penalties-for-late-filing-and-late-payment

3% applies if you agree a Time to Pay deal as it is classed as a repayment, if you do not pay and do not have an agreement in place then the 6/6.5% applies.

Have you got a link explaining that?

Seems a bit odd that HMRC will pay 3% on overpaid tax and, in certain circumstances, only charge the exact same rate on underpaid tax.

All money owed to HMRC, after the date due, is charged interest at 6%/(6.5% from Feb 21st), regardless of if you take a time to pay agreement (source: https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement#interest-charged-on-time-to-pay-arrangements)

The repayment interest rate of 2.5%/(3% from Feb 21st) is if you pay early (source: https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates) - note "early payments" in the URL, which they call repayments (somewhat confusingly) in the actual interest rate name.

Perksy5

So I don't know if this will help but I recently got a free 0 % money transfer of sorts using the natwest 22 month 0% balance transfer. 
I have a 3k limit with lloyds and did a 2.6k money transfer at 5.9% no fee. The BT is to pay that off and do money transfer again.
However with such delays on Natwest side and the application process itself, the full balance transferred over to my lloyds card leaving me almost 2.6k in credit on my lloyds card. 
I wanted to ask if I did a new money transfer would it still work with such a large credit balance. I dont think customer service understood my meaning and just said oh yes we can do a credit balance refund and moved the entire surplus to my current account.
This saved me doing a second money transfer, courtesy of the balance transfer.
I guess the secret was doing a balance transfer onto a card that had a lower limit.
If it works for you that cash moved off the credit card is the only way you can use credit card funds to pay HMRC bill, but I'm not sure how much you owe and this could've just been a fluke for me.

bsms1147

If you can find a money transfer card that charges 0% fee/x% APR, and then as soon as you can balance transfer that to a 0% fee/0% APR balance transfer card, likely the cheapest way.

You’d likely need 2 new credit cards unless any of your current ones do the above.

eg I have available to me a 6.9% APR, no fee money transfer card, so £1000 taken as a money transfer, then balance transferred in 7 days would cost something like £1.50 (equivalent to a 0.15% fee).