As many of you may know, ordinarily tax liabilities are due by 31 January, following the end of the tax year.
2020/21 has been anything but ordinary, and as a result, HMRC had confirmed that the initial 5% late payment penalty on Self-Assessment tax would not be charged if the tax is paid in full, or a time to pay arrangement is agreed, by 1 April 2021.
That date is now fast approaching, and we urge all Self-Assessment tax payers who have yet to pay their liabilities in full, to do so or contact HMRC to set up/discuss a time to pay arrangement.
Tax payers with a liability of less than £30,000 can self-serve an arrangement through their online tax account, and can spread these into instalments, running until 31 January 2022.
Alternatively, you can contact HMRC on 0800 024 1222 and request this over the telephone.
Please note that interest will still accrue on the outstanding balance from the initial due date, the rate is currently 2.6% per annum.
Should you have any queries, please contact us to discuss further.
Paul Buckley, Associate
Cloud Accounting & Tax Team
Tel: 01429 234414