The following Owner-Managed Businesses guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
Interest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.
From April 2010, a single rate of simple interest on late payment of tax applies across all taxes, with the exception of corporation tax.
Interest accrues from the date on which the payment was due until the date on which the payment is made. It should be calculated on a daily basis. It accrues at the HMRC published rate of interest. The historic rates, along with the current rate of interest on late payments, can be found on the GOV.UK website.
Interest does not accrue on late paid interest itself, ie it is simple interest rather than compound interest.
For example, if the interest rate is 2.6% and a taxpayer was due to pay £10,000 on 1 January but did not pay it until 21 January, an interest charge of £14.25 arises (ie £10,000 x 20/365 x 2.6%).
Overpayments of tax made by the taxpayer to HMRC attract interest, but at lower rate than those on underpayments of tax. See the interest rate for overpayments on the GOV.UK website.
Late payment of tax might also attract a penalty, see the Late payment penalties for income tax, capital gains tax and corporation tax and Late payment penalties for PAYE / NIC guidance notes.
As per the guidance on the GOV.UK website, the second self assessment payment on account for the 2019/20 tax year is effectively deferred from 31 July 2020 to 3
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
The majority of state benefits (also called social security benefits) are managed by the Department of Work and Pensions (DWP) via the Jobcentre Plus.Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.