HMRC has announced that self-assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April 2021.
Usually, a 5% payment penalty is charged on any unpaid tax that is still outstanding on 3 March. However, as a result of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay.
An initial £100 penalty will still be charged to those who have not submitted their returns by 28 February 2021, however, so HMRC has urged taxpayers who have yet to file their 2019/20 return to do so now.
Afford Bond Director, Paul Edwards said: “HMRC is also encouraging customers to use the time-to-pay facility, allowing them to spread the cost of their self-assessment tax bill into monthly payments until January 2022. We have some clients who have taken advantage of this flexibility and if you need help with your tax returns, please don’t hesitate to speak to one of our team – either at Nantwich accountants office, or our Wilmslow accountants office.”
HMRC has revealed that over 97,260 customers have already set up a self-serve time-to-pay arrangement online, totalling more than £367 million.
HMRC 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.”