Self Assessment Update

HMRC have 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.

They have confirmed that the payment deadline for Self Assessment is 31 January and interest will be charged from 1 February on any amounts outstanding. The deadline has not changed, but 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.

HMRC said that they recognise the pressure affecting customers due to the pandemic, and have asked anyone who is worried about paying their tax to contact them for help and support on 0300‌‌ 200‌‌ 3822.

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, on GOV‌‌.UK.

Self Assessment customers who have yet to file their tax return should do so‌‌ by‌‌ 28‌‌‌‌ Fe‌bruary to avoid a late filing penalty.

If you need any assistance with your Self Assessment returns or have any general questions, please get in touch with your CB Reid contact.