Accumulating interest on money owed to HMRC

[ApeShape]

Just a thought. I've had my personal tax return back and I now know what I'll owe HMRC and when. In past years I just paid it off immediately, but as the dates are quite some way into the future and with interest rates going up I fancy just stuffing it into the best saver account I have until the due date. Am I the only one? Am I kind of ripping HMRC off....

[northernladuk]

Did you do any sums before you posted this brain fart? How much do you owe HMRC that you can play with, over what period, and what percent returns.

I'm guessing a couple of grand, for 6 months at 2%.. You actually worked out much that is?

You also realise that whatever you make on the investment you also get taxed on so cut your prediction by 20 or 50% depending on tax band.

How much have you made for all that dicking about?

Thanks for putting zero thought in to it before posting though.

[ApeShape]

Did you do any sums before you posted this brain fart? How much do you owe HMRC that you can play with, over what period, and what percent returns.

I'm guessing a couple of grand, for 6 months at 2%.. You actually worked out much that is?

You also realise that whatever you make on the investment you also get taxed on so cut your prediction by 20 or 50% depending on tax band.

How much have you made for all that dicking about?

Thanks for putting zero thought in to it before posting though.

Wow. If my question pissed off you so badly why did you bother responding?

[northernladuk]

Wow. If my question pissed off you so badly why did you bother responding?

Didn't piss me off. Gave me an opportunity to send a gruff and rather rude reply with little chance of an infraction which I like doing so actually cheered me up.

[ladymuck]

If you pay the bulk of what you owe HMRC but leave a small balance owing, you'll find HMRC will pay you some interest and your balancing payment will be reduced.

I earned / recovered / whatever about a fiver last year on my CT bill. Every little helps and all that.

I have noticed that interest is also paid on personal tax but it seems to disappear into the ether, which is a tad annoying. It's usually pennies so I don't tend to make an effort with it.

Also, your main failure is to not realise that banks are generally NOT passing on base rate increases to savers. They're only really interested in charging more, not paying more, so you may struggle to find a decent return in such a short space of time.