hmrc interest

jacggors

This isn't a question about saving tax, but I couldn't find a better forum category for this. For the tax I owe HMRC through my self-assessment, can someone confirm whether HMRC pay interest if I pay it (months) early, and if so, what the rate is? From what I've seen I'm thinking the answer is probably that they don't. I have searched the HMRC website and found pages that sound like they'll answer the question, but then don't (e.g. https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). And I thought someone here might know.

eskbanker

I can't see how (or why) they'd pay interest merely for settling what you're due to pay ahead of the deadline - where would you draw the line?  No doubt 31 January will be a peak date for transactions but would you expect some sort of discount for paying on the 30th?  Or in December?  Or October?  Or July?  Or April?

TheSpectator

HMRC only pay repayment supplement on overpaid tax - what you are describing is not an overpayment, it's a voluntary early payment. There is no benefit to paying you tax bill early, stick in a savings account until needed.

jacggors

Thanks Spectator! Much appreciated.