I can't afford to pay my tax bill, it's due 31st January
So, you've got a tax bill, but your bank balance isn't quite up to scratch. I can assure you that you are not alone in being a taxpayer who will not be able to make their tax payment in full by 31st January 2015. Here's what you should know:
Interest will accrue at approx. 4% per annum from 1 February 2015
Any amount still outstanding as at 28 February 2015 will have a 5% late payment penalty attached to their HMRC account (this happens again approx. 6 months later)
HMRC may kindly suggest to you that they can accept a credit card payment to clear your balance. Just take a minute to consider the "final" cost after your credit card is cleared with the interest slapped on top... Credit card's interest rates vary, let's say up to 30%, perhaps late payment charges and over limit charges. HMRC charge less than 5% per annum.
Paying tax is the UK is costly enough, ensure you're smart enough to not pay extra penalties and interest to the Government. There's just no sense in it
Taxswag
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