HMRC has announced that Self-Assessment customers won’t be charged the initial 5% late payment penalty providing they pay their tax or make a Time to Pay arrangement by 1 April 2021.
The submission and payment deadline for Self-Assessments is 31 January, with interest charged from 1 February for any amounts outstanding. In light of the COVID-19 outbreak and the subsequent lockdowns however, the deadline for the submission of 2019/20 tax returns has been extended to 28 February 2021.
Customers now have until 1 April 2021 to pay any amount they owe or set up a payment plan, without receiving a penalty.
If you’re struggling to pay your tax, HMRC’s Time to Pay option allows customers to spread the cost of their bill into monthly instalments until January 2022. You can set up your payment plan on the gov.uk website.
HMRC recognises the pressure that customers are facing because of the pandemic. Anyone worried about paying their tax can contact the Revenue for help and support on 0300 200 3822.
Please remember that in order to avoid receiving a late payment penalty, payment plans or payments in full must be in place by midnight on 1 April 2021.
If you have any questions about your Self-Assessment or are worried about paying your tax bill, please don’t hesitate to get in touch with PKB and we can help.
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