Dire implications for late tax payments 01 May 2020

If you pay your tax one day late you come out of what is called the Safe Harbour scheme.

Instead of having until 7 April to pay your terminal (year-end) tax, it becomes payable on the previous 7th of May. You won’t know about this until many months later and by that time massive interest charges at the rate of 8.35 percent will have built up.

Make it a practice to check your bank account to ensure the payment has gone through on the right day.

If it hasn’t, we can still help you.

We can use what is known as a tax intermediary.

Without going into detail, we can buy the tax for you at the date you should have paid it and it will cost you a fraction of the amount Inland Revenue would have charged.

Get in touch with us as soon as you know you have made a mistake to keep your cost to a minimum.

One way you could ensure your taxes are always paid on time is to authorise Inland Revenue to direct debit your account. But if you do, there’s always the possibility of them taking the wrong amount.


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