Paying tax late?

[tvrolet]

I’m due to pay a personal tax bill and a corporation tax bill this week. I’d much rather pay them both next week as it would help with cashflow. If I’m reading the HMRC web site properly there’s no penalty if you pay within 14 days of the due date? Is this correct? I’d ask my accountant but he’s on holiday - the cheek of it.

And assuming it is, why doesn’t everyone just pay 14 days late…or maybe they do, and I was one of the few always paying on time?

[Douglas Quaid]

I’ve had reminder letters before then paid up as I forgot to pay. It has never caused an issue afaik.

[James P]

There should be no penalties applied but interest (7.75% pa) will be charged from the due date until HMRC receive payment. If unpaid after 30 days, then a 5% penalty is charged.

[_CrazyIvan_]

Interest will be charged as James says but there's actually no late payment penalty for corporation tax (only late filing of the corporation tax return).

I assume the personal tax payment is your July payment on account? if so again there will be interest charged but no penalties are charged on payments on account. The 30 day late payment penalty only applies to balancing payments due at the 31st January.