Self Assessment taxpayers will not be charged a 5 per cent late payment penalty if they pay their tax or set up a payment plan by 1 April, HM Revenue and Customs (HMRC) has announced.
The payment deadline for Self Assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Normally, a 5 per cent late payment penalty is charged on any unpaid tax that is still outstanding on 3 March. This year, due to the COVID-19 pandemic, taxpayers have 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 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.
More than 97,260 customers have set up a self-serve Time to Pay arrangement online, totalling more than £367 million.
Jim Harra, HMRC’s Chief Executive, said:
‘Anyone worried about paying their tax can set up a payment plan to spread the cost into monthly instalments. Support is available at GOV.UK to help anyone struggling to meet their obligations.’
There are several ways that taxpayers can pay their Self Assessment 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.