When is int charged on Self Assessment payment on account.

homefromhome69

I paid my balancing payment on my 2023/24 self assessment, but I didn't have enough to pay the payment on account for 2024/25 - I will pay it, but will I be charged interest on it, or is it not due until 31 Jan 2025?

Dazed_and_C0nfused

Yes, interest is charged at 7.75%.

It's calculated daily so each payment you make will start limiting the interest charged.

Same applies to the July POA, interest will be charged after 31 July 2024.

homefromhome69

Thanks, I couldn't quite work it out from what the gov.uk site said! I thought I'd get a straight answer here 👍

[Deleted User]

[Deleted User] said:

[Deleted User] said:

You have your years mixed up. 

The balancing payment for 2022/23, not 2023/24 was due on 31st January 2024.

The payments on account due on 31st January and 31st July 2024 are in respect of 2023/24 tax year, not 2024/25. 

Good spot.  I'll have a word with the GPT.  I'll manually go back and edit the answer!  Looking at the original question, it said "I didn't have enough to pay the payment on account for 2024/25" so I guess my GPT took that literally!  It's still early days but I like the way it mentioned the penalties.

I have deleted my original post so as not to confuse. 

Dazed_and_C0nfused

Late Payment Penalties:

Apart from interest, there can also be late payment penalties if the payment is significantly late. However, penalties for late payments on account specifically start accruing after 30 days, 6 months, and 12 months.

That could benefit from an extra bit to make it clear that LPP only apply to POA once the following 31 January has passed.  Until then it's just late payment interest that can be charged.

For example 2023-24 POA due on 31 January 2024 could not incur a LPP until 30 days after 31 January 2025 (the due date for the 2023-24 Balancing Payment).