Self-Assessment late payment penalties relaxed but interest still accrues
Following HM Revenue & Customs’ (HMRC) announcement that it is waiving late filing penalties for Self-Assessment taxpayers who file by 28 February, it has now announced that it is waiving the five per cent late payment penalty that usually applies from 3 March for taxpayers who pay or set up a payment plan by 1 April 2021.
Self-Assessment taxpayers who are unable to pay all the tax they owe can set up a self-serve Time to Pay arrangement online, if the debt is less than £30,000, allowing them to pay in monthly instalments until January 2022.
Meanwhile, those who owe more than £30,000 can contact HMRC by phone on 0300 200 3822 to request a Time to Pay arrangement. Crucially, however, interest continues to accrue on outstanding Self-Assessment tax payments and has been doing so since 1 February.
If you have not yet filed your Self-Assessment tax return, you should do so before 28 February to avoid a £100 penalty. Please contact us today to find out more about our services for Self-Assessment taxpayers.