Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

July tax bill creates £51 billion in consumer debt

by admin July 29, 2022
July 29, 2022
July tax bill creates £51 billion in consumer debt

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.”

Read more:
July tax bill creates £51 billion in consumer debt

0
FacebookTwitterGoogle +Pinterest
previous post
Centrica defends £1.3bn windfall as wholesale energy prices leap
next post
Getting to Know you: Benjamin Sparks, Commercial Construction Consultant

You may also like

UK businesses see 92% surge in demand for...

February 10, 2025

Three Viable Alternative Business Financing Methods

September 24, 2024

Klarna Embraces AI to Drive Efficiency, Opts Against...

April 10, 2024

Understanding Alternative Dispute Resolution (ADR): A Comprehensive Guide

December 30, 2024

Passport workers start five week strike as Brits...

April 3, 2023

Sameer Gehlaut to Raj Kotecha: 5 investors keeping...

October 6, 2022

Cleantech company Exergyn creates 15 new roles in...

June 20, 2023

Will HMRC ever be able to deliver Making...

December 21, 2022

Hunt and big banks set to ease mortgage...

June 25, 2023

Food industry lobbying threatens UK household recycling reforms

June 2, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Harmony Squad: Supreme Court Issues Six Unanimous Decisions

      June 5, 2025
    • Quick Login to AmourFactory: A Beginner’s Guide

      June 5, 2025
    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025

    Categories

    • Business (8,149)
    • Investing (2,011)
    • Politics (15,535)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.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.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved