Paying your tax late can prove very expensive

Most taxpayers are aware that if they are late paying their tax HMRC will charge them interest from the due date.

What may come as a shock is that HMRC will charge penalties based on the unpaid tax if certain payment deadlines are missed. Next Sunday, 31st January, the balance of the 2014/15 Self Assessment will become due for payment (as well as the first Payment on Account of the current year's liability). If the 2014/15 balance is still unpaid 30 days from 31st January HMRC will charge a penalty of 5% of the outstanding tax.

If it's six months late HMRC will charge another 5% penalty and if it still hasn't been paid 12 months from the due they will charge another 5%.

Days to January 31st