Late payment interest deferred if Time to Pay arrangement set up by 1 April
On Friday 19 February, HMRC announced that its Self Assessment customers will not be charged the initial 5% late payment penalty if they pay their tax or make a ‘Time to Pay’ arrangement by 1 April 2021.
The payment deadline for Self Assessment is 31 January. Interest will be charged from 1 February on any amounts outstanding. The deadline has not changed, but this year, because of Coronavirus, 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 1 April. Otherwise late payment penalties will apply.
The self-serve Time to Pay facility allows people to spread the cost of their tax liabilities into monthly instalments until January 2022. On the Government website, people can set up a payment plan online.
HMRC is sensibly recognising the pressure affecting people in Hampshire and Surrey due to the pandemic. If people are worried about paying their tax there is an HMRC helpline, 0300 200 3822.
Self Assessment customers who have yet to file their tax return should do so by 28 February to avoid a late filing penalty.