Avoid 5% surcharge!!!
If you have not yet paid your tax liability for 2019/20 and are not able to pay this in full, then you have until 1 April 2021 to set up a Time to Pay arrangement with HMRC and spread the cost over monthly instalments until January 2022.
The payment deadline of 31 January 2021 remained the same even though the late filing penalty was relaxed for tax returns submitted by 28 February 2021.
This means that interest will be charged on late payments, with the current rate of late payment interest standing at 2.6%.
You will also face a 5% surcharge on the amount outstanding if a payment plan has not been set up by midnight on 1 April 2021.
Further late payment penalties will be charged in 6 and 12 months (August 2021 and February 2022) if payment plans have not been set up.
See the following HMRC links for more information and on how to set up a payment plan:
Set up Self Assessment Payment Plan
Set up Self Assessment Pay in Instalments
If you know that your income for 2020/21 will be lower than in 2019/20 then you can reduce your payments on account. Click here
For further assistance or advice please contact the Tax Team or your Client Partner at Rayner Essex or fill out the form below and we will be in touch.
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