Warning as millions of people could owe money to HMRC

Millions of people could be hit with extra charges from HM Revenue and Customs (HMRC) if they miss an important deadline in the coming weeks.

The government department is responsible for collecting taxes, among other things, and millions of self-employed people, as well as those with other taxable income, had to file a self-assessment by January 31, 2024.

Some people who are self-employed or who have other untaxed income may need to make a ‘payment on account’ to HMRC. This is essentially an advance payment of the tax bill for the year, based on the previous year’s income.

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And the second installment of this payment is due by July 31. The experts at Federal management warns you that failure to meet this deadline may result in interest charges on the amount you owe from the due date until the date of payment.

For those receiving tax credits, July 31 is also the deadline for renewing your claim. Failure to meet this deadline may result in the suspension of payments.

If you fail to renew, not only could the credits stop, but you may also have to repay what you have received since the beginning of the tax year.

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