Self Assessment Late Payment Penalties

Self Assessment late payment penalties

HMRC recently announced that customers will not be charged the initial 5% Self Assessment late payment penalties if they pay their tax or make a Time to Pay arrangement by the 1st of‌‌ April 2021.

As always, the payment deadline for Self Assessment was the 31st of January and interest will be charged from the 1st of February 2021 on any amounts outstanding. The deadline has not changed, but this year, 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 the 1st of‌‌ April 2021 to avoid a late payment penalty.

HMRC recognises the pressure affecting customers due to the pandemic, and anyone worried about paying their tax should contact HMRC for help and support on 0300‌‌ 200‌‌ 3822.

The self-serve Time to Pay facility allows customers to spread the cost of their tax liabilities into monthly instalments until January‌‌ 2022. Customers can set up a payment plan online, on GOV‌‌.UK.

Self Assessment customers who have yet to file their tax return should do so‌‌ by the‌‌ 28th of‌‌‌‌ Fe‌bruary 2021 to avoid a late filing penalty. If you need help with this contact me today.