AI Payment Arrangement

 

HMRC has announced that Self Assessment customers will not be charged the automatic 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1‌‌ April 2021.

Normally, a 5% late payment penalty is charged on any unpaid tax that is still outstanding on 3 March following the end of the tax year. However this year, because of the impact of the pandemic, 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, 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.

HMRC recognises the pressure affecting customers due to the pandemic, and anyone worried about paying their tax should contact HMRC for help and support on 0300‌‌ 200‌‌ 3822.

Please note that HMRC will stick to the normal rule of charging interest at 2.6% per annum for all self-assessment bills not paid on time.