I’m going to be a bit short of money for the self-assessment payment due on 31st January and was wondering what the Taxman would do if I paid another creditor I have instead of the Taxman?
If you don’t pay your income tax bill by 31 January 2008 you will have to pay interest at 8.5% on the unpaid balance. Also if you delay paying beyond 28 February 2008 you will have to pay a surcharge of 5% on the outstanding tax due for 2006/07, which will also carry interest at 8.5%. What’s more, the Taxman marks late payers as high risk cases. A high risk marker means you are more likely to get investigated and end up paying penalties for any tax errors you have made in the last six years. If you are really going to struggle to pay it is sensible to talk to them to arrange a payment plan.
