Currently, more people are likely to have tax arrears. Due to the ongoing pandemic and rising costs. Yet, late payment of self-assessment tax need not become an issue.
So, how can you deal with outstanding liabilities? Firstly, doing nothing isn’t an option. The bill won’t go away. Plus, it will cost you more in the long run. Take a bill due on 31 January 2022, for example. Pay it in full by 1 April 2022. Otherwise, you’ll incur a late payment penalty. This will be 5% of the amount outstanding.
Late payment of self-assessment tax
What if you know you can’t pay the full amount by April 1? All is not lost. Contact HM Revenue & Customs (HMRC) and arrange payment by instalment. It’s called Time to Pay. Of course, interest will be payable on the outstanding debt. However, you will avoid the late payment penalty.
Payment by instalment
Keen to settle your tax bill in instalments? It’s an option for debts of less than £30,000. So long as you pay the full amount within 12 months. Also make sure you’ve filed your latest tax return. Arrange Time to Pay through your online Government Gateway account.
Worried about a bill that exceeds £30,000? Or because you’ll need more time? Then it’s best to discuss late payment of self-assessment tax. Contact the Self-Assessment Payment Helpline on 0300 200 3822. Call Monday-Friday between 8.00am and 6.00pm.