More help unveiled for Self Assessment taxpayers

HM Revenue and Customs has announced that Self Assessment taxpayers will not be charged the five per cent late payment penalty if pay their tax or set up a payment plan by April 1.

The payment deadline for Self Assessment is January 31 and interest is charged from February 1 on any amounts that are outstanding.

Normally, a five per cent late payment penalty is also charged on any unpaid tax that is still outstanding on March 3.

However, this year, because of the impact of the Covid-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.

Taxpayers can pay their tax bill or set up a monthly payment plan online at the GOV.UK website. They need to do this by midnight on April 1 to prevent being charged a late payment penalty.

The online Time to Pay facility allows taxpayers to spread the cost of their bill into monthly instalments until January 2022.

HMRC says that it recognises the pressure affecting taxpayers due to the pandemic, and is encouraging anyone worried about paying their tax and unable to set up a payment plan online to contact it for help and support on 0300 200 3822.

Latest figures reveal that more than 97,260 customers have set up a self-serve Time to Pay arrangement online, totalling more than £367m

Jim Harra, HMRC’s chief executive, 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.”

There are several ways that taxpayers can pay their Self Assessment tax bill in full. They can pay online, via their bank, or by post.

Taxpayers should still pay in full if they can. This is the only way to stop interest accruing.

Self Assessment taxpayers who are required to make Payments on Account, and know their 2020 to 2021 tax bill is going to be lower than in 2019 to 2020 – for example due to loss of earnings because of Covid-19 – can reduce their Payments on Account.

Self Assessment taxpayers who have yet to file their 2019 to 2020 tax return should file by February 28 to prevent being charged a late filing penalty of £100.

To discuss any issues raised in this article please contact WNJ on 01772 430000