The payment deadline for self-assessment tax returns is usually 31st January and interest is charged from 1st February on any amounts outstanding.
Due to the COVID-19 pandemic, HM Revenue and Customs (HMRC) has announced a number of measures to help taxpayers manage their taxes.
These temporary measures mean you will not get a late payment penalty if you pay your tax in full or enter into a payment plan by 1st April 2022.
Ordinarily, after a delay of 30 days, late payment penalties at 5% of the tax you owe will begin to apply. The good news is that for this year, there is an extension until 1st April beyond which the 5% will apply. Additional late payment penalties will be added if the delay exceeds six months and more at 12 months.
Although you may not need to pay a penalty, you will still be charged late payment interest from 1st February 2022, if you pay after the tax deadline of 31st January 2022.
Taxpayers can pay their tax bill or set up a monthly payment plan online here. You must do this by midnight on 1st April to avoid being charged a late payment penalty.
Time To Pay allows you to spread the cost of your self-assessment tax bill into monthly instalments so these are more manageable.
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.
At TaxAssist Accountants, we would be happy to assist you with your affairs, from helping with the day-to-day bookkeeping, to completion of your accounts and tax return. We’ll also ensure that you’re claiming everything you’re entitled to and obtaining as much tax relief as possible. Please call us free to find out more.
Date published 30 Jan 2020 | Last updated 10 Feb 2022This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.