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More good news for self-assessment taxpayers! HM Revenue & Customs (HMRC) will not penalise late payers so long as they pay their tax by April 1. This concession also applies to anyone who sets up a payment plan by this deadline.

This confirmation amounts to extra help for self-assessment taxpayers. It follows HMRC’s decision not to penalise anyone who filed their return late. Those who filed by 28 February 2021 will not incur late filing penalties.

 

Interest and late payment penalties

The self-assessment tax payment deadline is January 31. Usually, HMRC charges interest on sums outstanding on February 1. Furthermore, HMRC levies a 5% late payment penalty on tax outstanding on March 3. Now, due to #Covid-19, HMRC is relaxing the rules. It affords people more time to put their tax affairs in order.

 

Pay online

If you’re affected, go to GOV.UK to pay your bill. Alternatively, you can arrange a monthly payment plan. Take action by midnight on April 1 to avoid a late payment penalty.

 

Help for self-assessment taxpayers

Understandably, some people worry about settling their tax bill. If you’re struggling, we recommend using Time to Pay. This online facility allows you to spread the cost. You can manage a tax bill of up to £30,000. Pay in monthly instalments by January 2022.

 

Ask for help

What if you can’t set up an online payment plan? Perhaps your tax bill is more than £30,000. Or you need more time to clear your debt in full. Ask for help. Call the Self-Assessment Payment Helpline on 0300 200 3822.

 

Paying in full

Always pay self-assessment tax in full, if possible. It’s the only way to prevent interest accruing. There are several ways to pay a lump sum. You can pay online, through your bank or by post. Check out help for self-assessment taxpayers on how to pay.

 

Payments on Account

Invariably, self-assessment taxpayers need to make Payments on Account. Don’t forget to factor in the impact of Covid-19. Your 2020/21 tax bill could be lower than in 2019/20. Most likely, this will be due to loss of earnings. If you’re in this situation, act now. Find out about reducing your Payments on Account.

 

HMRC appreciates that the past 12 months have been difficult. Do not hesitate to take up its offer of additional help for self-assessment taxpayers.