HMRC are recognising that Covid-19 is affecting the capacity for taxpayers and their agents to meet their obligations and are showing some flexibility to help.
The 2020/21 balancing payment of tax and first payment on account would ordinarily have been payable by 31st January this year, however, HMRC have confirmed that no late payment penalty will be applied if the tax is paid in full or a Time to Pay arrangement is set up by midnight on 1st April 2022. However, interest at 2.75% will still be charged from 1st February 2022 so it is advisable to settle any outstanding liabilities as soon as you are able.
You can make your own Time to Pay arrangement using your Government Gateway account, if you:
- have filed your latest tax return
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay your debt off within the next 12 months or less
If you cannot make your own Time to Pay arrangement online, for example if you owe more than £30,000 or need longer to pay, you can call the Self Assessment payment helpline on 0300 200 3822.
Please note that we are not able to set up a Time to Pay arrangement for you.
Further details can be found here.
