Late payment interest fees

[kabads]

My wife isn't able to pay all her tax bill as of 31 Jan 2012 - for the year 2010-2011 as HMRC are now asking her for payment on account for 2011-2012. From this webpage http://www.hmrc.gov.uk/rates/interest-late-pay.htm - the specified amount is 3% which is much cheaper than our credit card rate or arranged overdraft rate which are both in th 15-16%. Is this rate still correct?

Is the 3% per annum, and will it be easy to pay the overdue amount as soon as we have the rest of the money (which is likely to be end of February, 2012)?

TIA

[mullet]

Yes, the HMRC interest rate is 3% per annum. Be careful to pay by the end of February; the surcharge trigger date is 28 February, and any balance unpaid will then attract a surcharge of 5% of that balance.

[kabads]

Thanks mullet. What is the best method of paying late? Is it still through the website? She's never paid late before (on her 3rd self-assessment now). And thanks also for the tip about the 5% - although still reasonable compared to other rates, still nice to avoid if you can.

[King_Maker]

Yes, it is currently 3.00 p.a.

There will be a surcharge of 5% of the tax due if unpaid after 29 February 2012; another 5% surcharge on 1 August 2012.

If relevant, has your wife contacted The HMRC Business Payment Support Service?

[kabads]

King Maker - she hasn't contacted the business centre. This is income from a rental property that she owns.