HMRC has announced, Self assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April.
The payment deadline for self assessment is 31 January and interest is charged from 1 February on any amounts outstanding.
Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 March. But this year, because of the impact of the pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.
Taxpayers can pay their tax bill or set up a monthly payment plan online at www.gov.uk. They need to do this by midnight on 1 April to prevent being charged a late payment penalty.
The online Time to Pay facility allows taxpayers to spread the cost of their self assessment tax bill into monthly instalments until January 2022.
HMRC recognises the pressure affecting taxpayers due to the pandemic, and encourages anyone worried about paying their tax and unable to set up a payment plan online to contact HMRC for help and support on 0300 200 3822.
There are several ways that taxpayers can pay their selfassessment tax bill in full. They can pay online, via their bank, or by post. Taxpayers should still pay in full if they can. This is the only way to stop interest accruing.
Self assessment taxpayers who are required to make Payments on Account, and know their 2020 to 2021 tax bill is going to be lower than in 2019 to 2020 – for example due to loss of earnings because of Covid-19 – can reduce their Payments on Account.
Self assessment taxpayers who have yet to file their 2019-20 tax return should file by 28 February to prevent being charged a late filing penalty of £100.
If you require any further information. Please get in touch with your usual Ward Williams Creative contact.