Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

July tax bill creates £51 billion in consumer debt

by
July 28, 2022
in Politics News
0
July tax bill creates £51 billion in consumer debt
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter

A whopping £51 billion in credit card, overdraft and personal loan debts will be accrued by consumers who are struggling to meet the upcoming tax deadline.

This comes as nearly half of self-assessment tax payers struggle to keep up with payment dates, with the next payment due at the end of July likely to take some by surprise.

44% of self-employed Britons will have to rely on borrowing in order to make HMRC repayments after struggling to keep track of what they owe. At the same time, smart money platform, Credit Karma, found that rising costs of living have seen many come up short ahead of their next instalment.

Even for those with sufficient cash set aside, the deadline will cause longer-term financial disruption for months to come, as those eligible for self-assessment expect to take nearly four months to recover from an average outlay of more than £10,000.

This paints a bleak financial picture for the self-employed, as 43% will be forced to cut back on essentials like food to pay their bill. At the same time, more than half of those who have borrowed to meet repayments are worried about paying back debts, with billions due in interest to lenders.

With most feeling the strain of rising prices on their finances, taxes are becoming an unaffordable expense for many consumers. Another loophole to cover tax bills is using PayPal to cover stamp duty, now used by one in six homeowners. Where cash is needed to cover deposit payments, buyers are paying the outstanding balance on a credit card or through PayPal credit, in order to get on the property ladder.

And with relaxations of late payment fines and the end of COVID extensions, which have previously served as a lifeline for many of the self-employed, it’s important for consumers to proceed with caution when it comes to paying their next instalment.

Responding to the findings, Akansha Nath, Head of Partnerships at Credit Karma said: “The July deadline presents an unwelcome financial squeeze for many self-employed workers. This is one of the first self-assessment repayments due since COVID, where government support, or the opportunity to defer, is no longer available. While, at the same time, many are suffering the effects of a cost of living crisis.

“These tax repayments are not insignificant sums, and those who simply don’t have enough money in the bank to cover their bill next week should make sure they’re using credit responsibly – looking around for the best deals available, finding agreements where they can stay on top of repayments, and strengthening their credit score as much as possible to make credit cheaper and more accessible.”


ShareTweetPin

Related Posts

Usain Bolt moves to trademark signature victory pose
Politics News

Usain Bolt moves to trademark signature victory pose

August 23, 2022
London to get new airport as Manston is cleared for take-off
Politics News

London to get new airport as Manston is cleared for take-off

August 23, 2022
Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience
Politics News

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
British Airways to cancel further flights up to the end of October
Politics News

British Airways to cancel further flights up to the end of October

August 23, 2022
Microsoft in trademark row with UK children’s reading firm Word Windows
Politics News

Microsoft in trademark row with UK children’s reading firm Word Windows

August 23, 2022
Crypto fraud revenues drop 65% following market meltdown
Politics News

Crypto fraud revenues drop 65% following market meltdown

August 23, 2022
Next Post
Tatum on Durant

Tatum on Durant

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Borrow A Boat, the ‘Airbnb’ of boats, smashes crowdfund, raising over £3million

Borrow A Boat, the ‘Airbnb’ of boats, smashes crowdfund, raising over £3million

June 28, 2022
WHO vows nothing ‘ridiculous’ as public submits ideas to rename monkeypox

WHO vows nothing ‘ridiculous’ as public submits ideas to rename monkeypox

August 17, 2022
Stocks drop further ahead of US inflation report

Stocks drop further ahead of US inflation report

July 13, 2022
Inflation likely quickened in July

Inflation likely quickened in July

July 31, 2022
New Clark City draws interest from Singaporean investors at international road show

New Clark City draws interest from Singaporean investors at international road show

July 13, 2022
The upside of investing in luxury homes

The upside of investing in luxury homes

July 29, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.