HMRC announced this week (on Friday 19th February 2021) that Self Assessment customers will not be charged the initial 5% late payment penalty if you pay your tax or make a Time to Pay arrangement by 1 April 2021.
- So What Exactly Has Changed?
- The deadlines to file your tax returns have not changed, but a concession has been introduced to extend by one month the time you have to file your return without a fine being imposed;
- Also, because of the impact of COVID 19 HMRC is giving taxpayers more time to pay or set up a payment plan
- Payment plans or payments in full must be in place by midnight on 1 April to avoid a late payment penalty
- So How Do I Set Up A Time to Pay Arrangement?
- You must liaise directly with HRMC, your agent (Barrons) cannot do this for you by decree;
- The self-serve Time to Pay facility allows you to spread the cost of your tax liabilities into monthly instalments until January 2022;
- You can set up a payment plan online, on GOV.UK.
- What If I Still Cannot Meet My Repayments Using A Time to Pay Arrangement?
- HMRC has stated that it recognises the pressure affecting taxpayers due to the pandemic;
- If you are worried about paying your tax HMRC advise that you should contact them for help and support on 0300 200 3822;
- We would be happy to discuss any need to contact HMRC before liaising with HMRC directly so that we can help you prepare – please contact lisag@barrons-bds.com
- What About Late Filing Penalties?
- If you have yet to file your tax return you should do so by 28 February to avoid a late filing penalty.
- Can I Still Be Charged Interest On Late Payment?
- If you have not paid your Self Assessment tax bill by 31 January 2021; then interest will be charged from 1 February on any outstanding liabilities.