Where possible you should ensure you pay any tax you owe to HMRC by 31st January or you could face significant interest charges and penalties, which can quickly mount up.
If any tax due by 31st January 2024 is not paid on time, HMRC will charge interest, this is currently set at the rate of 7.75% per annum. In addition to this, a 5% penalty will be charged on any outstanding underpaid tax if this is not paid within 30 days of the due date, with an additional 5% penalty charged if the tax remains outstanding after 6 months and 12 months.
Penalties can quickly mount up and therefore it’s important that you file your tax return and pay any resulting tax due by the deadline or as soon as possible afterwards. This has become even more important since the rapid increase in interest rates, as an example the equivalent interest rate in February 2022 was only 2.75%! If you still haven’t finalised and submitted your return by the due date of 31st January, then you should give some consideration to making an estimated payment in an attempt to limit the potential interest and penalty charges due on late payment.