HMRC has announced that self-assessment taxpayers will not be charged the initial 5% late payment penalty if they pay or make a Time to Pay arrangement by 1 April.
Because of the impact of the pandemic, HMRC has decided to allocate additional time for taxpayers to pay their tax bill or to set up a payment plan. To avoid a late payment penalty either a payment plan must be in place or payment made in full by midnight on 1 April.
It is to be noted that the payment deadline for self-assessment submissions is still 31 January and interest will be charged from 1 February on any outstanding amounts.
Time to pay
For those who wish to set up a payment plan, the online Time to Pay facility allows taxpayers to spread their tax liabilities by paying in monthly instalments until January 2022. Further information can be found on gov.uk.
Queries to HMRC
HMRC has advised that anyone who is concerned about paying their tax should contact them for help and support on 0300 200 3822.
Filing your tax return
If you have not yet filed your self-assessment tax return you should do so by 28 February to avoid a late filing penalty.