Self-employed: Unpaid Taxes
(asked on 8th January 2021) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to remove the simple interest applied on HMRC's Enhanced Time to Pay mechanism for self-employed people with taxes to pay for the year 2019-20.
This question was answered on 13th January 2021
The purpose of interest is to recompense the party deprived of the use of money that is owed. Interest reinforces the fact that taxes are due for payment on particular dates and brings a degree of fairness into the system where those payment dates are met by some taxpayers but not by others. Interest is not a penalty for late payment.