We are writing to remind tax payers that any tax due under self-assessment for the year ended 5 April 2021, which remains unpaid by 1 April 2022, will incur a late payment surcharge of 5%.
As part of the Government’s Covid support package HM Revenue and Customs (HMRC) postponed charging late payment penalties for tax due under Self-Assessment for one month. This gave taxpayers extra time, if they needed it, to pay any tax still due for 2020/21 without incurring a fixed 5% penalty.
The deadline to pay tax for 2020/21 remains 31 January 2022 however the penalty waiver means that anyone who could not pay their Self-Assessment tax by the 31 January deadline will not receive a late payment penalty as long as they pay their tax in full by midnight on 1 April 2022.
In addition HMRC also extended the time limit to set up a Time to Pay arrangement to 1 April 2022. Under a Time to Pay arrangement, taxpayers who owe HMRC less than £30,000 still have some time to set up a Time to Pay arrangement using HMRC’s online facility. Those who owe more will need to phone HMRC to arrange a bespoke payment plan before 1 April 2022.
Please be aware that any tax that has been paid after 31 January will automatically accrue interest, which is now currently charged at a rate of 3% per annum.
For a more details about late tax payments or Time to Pay arrangements please contact our Tax Director Jenny Marks.
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Our staff have now returned to mainly office based working, whilst continuing to work from home at other times. They can still be contacted in the usual way either via email or by calling the office number where reception will divert your call to the appropriate staff member.
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