Interest and penalties on late paid tax under self assessment

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

Interest

If the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The due date for the balancing payment of tax is usually 31 January after the end of the tax year and the due dates for the payments on account are 31 January before the end of the tax year and 31 July next. See the Payment of tax and Self assessment ― payments on account guidance notes for further information.

Interest runs from the normal due date for payment to the day before payment is actually received by HMRC.

Interest is also charged on any late paid Class 2 NIC, with the normal due date being 31 January after the end of the tax year. See the Class 2 national insurance contributions guidance note regarding the removal of the requirement to pay Class 2 from 6 April 2024.

HMRC charges

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