Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1st April, HM Revenue and Customs (HMRC) has announced.
The payment deadline for Self Assessment is 31st January and interest is charged from 1st February on any amounts outstanding. Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3rd March. But 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 GOV.UK. They need to do this by midnight on 1st April to prevent being charged a late payment penalty.
The online Time to Pay facility allows taxpayers to spread the cost of their Self Assessment tax bill into monthly instalments until January 2022.
HMRC recognises the pressure affecting 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.
More than 97,260 customers have set up a self-serve Time to Pay arrangement online, totalling more than £367 million.
Self Assessment taxpayers who have yet to file their 2019-20 tax return should file by 28th February to prevent being charged a late filing penalty of £100.