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.
Need help with your self-assessment tax return?
We love working with self-employed professionals and independent business owners and if you are not receiving the service and support you deserve from your accountant then please talk to us on 01628 617100 or use our online enquiry form.
We offer free initial consultations, advice and support over the phone or via video meeting if you have any concerns about face-to-face meetings.
Date published 23 Feb 2021 | Last updated 7 Jan 2022
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