Self-assessed taxpayers have less than a week to pay their tax bill or set up a time-to-pay arrangement with HMRC, otherwise they will be facing additional costs.
Any taxpayers who have outstanding payments to make to HMRC for their 2020/21 tax returns are being urged to either make an arrangement or pay it off before 1 April 2022.
In light of the impacts of COVID-19, the usual penalty for late filing and payment of self-assessment tax was waived this year.
Those who missed the filing deadline on 31 January had until 28 February to file their return, and 1 April to pay their tax, without receiving a fine.
The agreement protects the taxpayer from late-payment fees within those deadlines but not from late payment interest, which is currently charged at 3%.
Tom Henderson, technical officer for LITRG, said:
“If you have not yet finalised your self assessment tax affairs for 2020/21, including submitting your tax return and settling any payment due, you should do so before 2 April 2022 to avoid potentially triggering a late-payment penalty.
“This penalty will not be levied if the amount owing is included in a time-to-pay arrangement, but this needs to be arranged before 2 April 2022 and the tax return must be submitted first.”
Ask us about your self-assessment tax bill.
