HMRC Late Payment Surcharges for Self-Assessment Taxpayers Delayed Until 1 April 2021

HMRC has announced that Self-Assessment taxpayers, who were due to pay tax by 31 January 2021, will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by midnight on 1 April 2021.  This late payment penalty would normally have kicked in from 28 February 2021.

This concession has been made as a result of the current Coronavirus pandemic.  Note that late payment interest will be charged from 1 February 2021 on any outstanding tax and it is just the late payment surcharge that is being delayed.

HMRC have stated that “they recognise the pressure affecting taxpayers due to the pandemic” and that anyone who is worried about paying their tax should contact HMRC for help and support on 0300 200 3822.

The HMRC self-serve Time to Pay facility allows taxpayers to spread the cost of their tax liabilities into monthly instalments until January 2022. Taxpayers can set up a payment plan online.

https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments

Self-Assessment taxpayers, who have not yet lodged their 2020 Tax Returns, should do so by 28 February 2021 to avoid a late filing penalty of £100.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.