Tax warning to all those self employed

UP to two million self-employed people in the UK are being urged to act now or risk a surprise letter from HMRC, with just days to go before the July 31 ‘payment on account’ deadline.

- By NEIL SHAW

Anyone who filed a self-assessment tax return earlier this year may now owe HMRC another lump sum, and forgetting to pay could trigger costly interest charges, extra debt, and damage to your credit score.

Aaron Peake, Personal Finance Expert at CredAbility, said: "People think they're done with tax after January. But if you're self-employed or have extra income, HMRC often expects you to pay again in July. These payments on account are usually half your last bill, so it can be a nasty shock if you weren't expecting it.