HM Revenue and Customs (HMRC) has announced that self assessment taxpayers will not be charged a 5% late payment penalty if they 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 outstanding amounts. Usually a 5% late payment penalty will be charged on any unpaid tax that is outstanding on March 3, however this year, HMRC is giving taxpayers more time to pay or set up a payment plan, due to the impact of the COVID-19 pandemic.
To prevent being charged a late payment penalty, you need to pay your tax bill or set up a payment plan online at GOV.UK by midnight on April 1.
HRMC recognises the pressure on taxpayers due to the pandemic, and encourages 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.
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.