This comes after HMRC announced it would cancel late filing penalties for taxpayers who can file their tax return online before 28th February to prevent being charged a late filing penalty of £100.
The payment deadline for self-assessment tax returns is usually 31st January and interest is charged from 1st February on any amounts outstanding. However, the 5% late payment penalty that is also charged on any unpaid tax that is still outstanding on 3rd March has been deferred due to the COVID-19 pandemic to give more time to pay or set up a payment plan.
Interest will continue at a rate of 2.75% pa for payments due by 31st January, but paid after this date.
Taxpayers can pay their tax bill or set up a monthly payment plan online here. They will need to do this by midnight on 1st April so they are not charged a late payment penalty.
Time To Pay allows taxpayers to spread the cost of their self-assessment tax bill into monthly instalments until January 2023.
HMRC is encouraging 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.
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Date published 23 Feb 2021 | Last updated 7 Jan 2022