Monday 22 February 2021

Don't be late in paying your personal tax bill

2019/20 income tax, CGT, class 2 and 4 NIC liabilities should have been paid by 31 January 2021 unless you have agreed a payment plan with HMRC.

HMRC has announced that self-assessment taxpayers won’t be charged the March 5% late payment penalty if they pay their tax or set up a payment plan by 1 April 2021.

Note that if the balance is still unpaid at midnight on 1 April 2021, a 5% surcharge penalty is added in addition to the normal interest charge unless a payment plan has been agreed.

Time to Pay Tax Service

Because of COVID-19, Self-Assessment tax payers can now apply online to HMRC to spread the cost of their tax bill into monthly payments without the need to call them. 

The online self-serve 'Time to Pay' service is designed to help ease any potential financial burden tax-payers may be experiencing due to the coronavirus pandemic.

If you would like to spread your tax payment, you can use the online self-serve 'Time to Pay' service through www.gov.uk to set up a direct debit and pay the tax that is owed in monthly instalments, up to a 12-month period.

If you set up a 'Time to Pay' arrangement, you will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021. 

If you need any assistance doing this please do not hesitate to contact us, we will be pleased to assist.

No comments:

Post a Comment