HMRC has announced that Self-Assessment customers will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1 April 2021.
This effectively means that the 5% late payment surcharge has been deferred by a month.
The payment deadline for Self-Assessment has not changed and will still be 31 January 2021 but due to the impact of COVID-19, taxpayers now have more time to pay or set up payment plans. Interest will be charged from 1 February 2021 on any amounts outstanding.
To avoid a late payment penalty, Payment plans or payments in full must be made by midnight on 1 April 2021.
If you are worried about paying your tax due to pressures stemming from the pandemic, you can contact HMRC for support on 0300 200 3822.
If you have not yet filed your 2019-2020 tax return you should do so by 28 February 2021 to avoid a late filing penalty of £100.
The self-serve Time to Pay facility allows customers to spread the cost of their tax liabilities into monthly instalments until January 2022. For more information on setting up a payment plan,
click here.
For further advice on any of the information contained in this email, please contact your usual Moore adviser.