We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Need a solution for paying tax to HRMC

Options
124»

Comments

  • razord 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.
    Not sure how I quite got that wire crossed in my head!
  • I have never learned about Money Transfer cards. I'm rearching now as it sounds like an option, unless I'm missing something. I wonder why no one else mentioned it on this thread? 
  • bsms1147
    bsms1147 Posts: 2,274 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I have never learned about Money Transfer cards. I'm rearching now as it sounds like an option, unless I'm missing something. I wonder why no one else mentioned it on this thread? 
    Most charge a fixed fee (which would exceed the alternative methods you’ve mentioned), it’s unusual but not impossible to find ones that charge no fee but charge an APR rate. Beneficial if you can pay it off very quickly (eg with a free balance transfer).
  • km1500
    km1500 Posts: 2,790 Forumite
    1,000 Posts Second Anniversary Name Dropper
    I have never learned about Money Transfer cards. I'm rearching now as it sounds like an option, unless I'm missing something. I wonder why no one else mentioned it on this thread? 
    it was the very first suggestion you received - see second post in this thread (the one after your first post)
  • CliveOfIndia
    CliveOfIndia Posts: 2,497 Forumite
    1,000 Posts Second Anniversary Name Dropper
    OP, if you do decide to go down the Money Transfer card route - and you're happy to pay the transfer fee - then you must make sure you'll be able to pay off the card in full by the time the promotional rate expires.  If you've got any balance remaining on the card after the promo expires it will start accruing interest at the card's standard APR, which is usually a fairly hefty rate.
    You may be able to transfer any remaining balance to another 0% card, but it's not a wise move to automatically assume you'll be able to do so.
  • born_again
    born_again Posts: 20,327 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    I have never learned about Money Transfer cards. I'm rearching now as it sounds like an option, unless I'm missing something. I wonder why no one else mentioned it on this thread? 
    1st reply to you & plenty of others mention Money transfer cards.

    But you will pay a hefty % fee on the amount.
    Life in the slow lane
  • I won't be going down the money transfer route.
  • Emmia
    Emmia Posts: 5,591 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 8 February 2023 at 7:34AM
    Have you actually called HMRC to talk about the money you owe them?

    Posting a SOA on the debt boards is also a good suggestion, the people over there may be able to help you find ways to cut / better control your outgoings - which could help you tackle this (and save for next year's bill).
  • Emmia said:
    Have you actually called HMRC to talk about the money you owe them?

    Posting a SOA on the debt boards is also a good suggestion, the people over there may be able to help you find ways to cut / better control your outgoings - which could help you tackle this (and save for next year's bill).

    I will today. I've been putting it off.

    Controlling outgoings was the first plan, so that's done.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.