Overview

• From midnight Thursday, HMRC will issue initial £100 fines to taxpayers who miss their second Payments on Account due July 31, escalating to £1,600 if instalments remain nine months late.
• Late payment interest has climbed to 8.25%, compounding costs on any unpaid tax balances from August 1.
• Under its Transformation Roadmap, HMRC has launched enhanced digital registration, on-screen guidance and a streamlined online appeals process for late filings and payments.
• Filers expecting lower income can apply to reduce their Payments on Account, while those struggling can set up Time to Pay arrangements or weekly and monthly Budget Payment Plans.
• Payments on Account apply to self-assessment taxpayers with bills over £1,000—including self-employed workers, landlords, investors and some employees whose income isn’t fully taxed through PAYE.