Second Payment on Account Deadline

The deadline for second payments on accounts is 31st July 2016 but this year this falls on a Sunday so it is vital that you consider the payments arrival at HMRC in order to avoid interest. HMRC’s interest rate currently stands at 3% per annum.

If you are having problems finding the money to pay It might be possible to arrange a time to pay agreement, but individuals should speak to HMRC directly as soon as possible. This is best done before the deadline has passed rather than after as HMRC are currently chasing debts more swiftly that previously.

HMRC should have sent a statement reminding you of your payment on account, which are estimates based on the previous year’s tax liability. If you need details please contact the tax department.

If you know now your income in the tax year to 5 April 2016 was lower, payments on account can be reduced. However, if they are reduced without the final figures and its reduced too low interest will be payable.

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