Self Assessment Late Payment Penalties

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.  However, HSKS Greenhalgh Tax Director Martin Tomes is advising taxpayers to still file their return and pay any tax due to avoid interest.

Although the self assessment deadline of 31 January has not changed, this year, because of the impact of COVID 19, HMRC is giving taxpayers more time to pay or set up a payment plan. 

Payment plans or payments in full must be in place by midnight on 1‌‌ April to avoid a late payment penalty.

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

Commenting on the latest annoucement, HSKS Greenhalgh's Tax Director Martin Tomes, says:

"Whilst any measures introduced by HMRC to make life a little easier are always welcome, we strongly advise that, wherever possible, any tax due is paid on time to avoid interest payments.  We're also reminding anyone who has yet to file their tax return that they should do so‌‌ by‌‌ 28‌‌‌‌ Fe‌bruary to avoid a late filing penalty."