What late payment costs
- Interest from 1 February. Charged daily on anything unpaid after the deadline.
- 30 days late. A 5% surcharge on the tax still outstanding.
- 6 months late. A further 5% surcharge.
- 12 months late. Another 5% surcharge on top.
If you cannot pay in full
Do not simply miss the payment. A Time to Pay arrangement lets you spread the bill over monthly instalments, and setting one up before or soon after the deadline usually stops the surcharges building, though interest still applies. The key is to act rather than ignore it.
Facing a bill you cannot cover?
Time to Pay can keep you in control and limit the surcharges. TaxTune checks the figure is right, makes sure you have claimed everything, and helps arrange payment with HMRC.
Let us help you manage the bill
We confirm your tax is correct, claim every relief, and guide you through Time to Pay if you need it. Fixed fee.
Frequently asked questions
What is the penalty for paying tax late?
Interest runs from 1 February, plus a 5% surcharge on tax still unpaid after 30 days, another 5% after 6 months, and a further 5% after 12 months.
Does filing on time stop late payment penalties?
No. Late payment penalties and interest apply even if you filed the return on time. The tax itself must be paid by 31 January.
What is Time to Pay?
It is an HMRC arrangement that spreads your tax bill over monthly instalments. Setting one up before or soon after the deadline usually limits the surcharges, though interest still applies.
How much interest does HMRC charge?
Interest is charged daily on unpaid tax from the day after the deadline, at a rate set by HMRC that tracks the Bank of England base rate.
What should I do if I cannot pay?
Act rather than ignore it. Contact HMRC or your accountant to arrange Time to Pay, which keeps you in control and limits the penalties that would otherwise build.