The short version: If you pay your tax bill late, HMRC charges penalties on top of what you already owe. Plus interest. The longer you wait, the more it costs.
How much are the penalties?
After 30 days late, you’re charged a percentage of the outstanding tax. After six months, another chunk. After twelve months, more again. By the time you’re a year late, you could owe an extra 15% or more on top of your original bill, plus interest the whole time.
Is this separate from late filing?
Yes. You can be penalised for filing late AND paying late. They stack up. And there are also penalties for failing to notify HMRC about taxable income in the first place. It can get expensive quickly.
Can you set up a payment plan?
Yes. If you contact HMRC before the deadline and arrange a Time to Pay agreement, you can spread your bill over instalments. This can help you avoid the worst penalties, though interest still applies.
Can you appeal?
If you have a genuine reasonable excuse for paying late, you can appeal. HMRC will consider things like serious illness or exceptional circumstances, but you’ll need evidence.
Got a tax bill you’re struggling to pay? Talk to us before it gets worse.
