Do you have self assessment income tax owed? Here is how to avoid receiving a penalty..
Self assessment tax payers who miss paying unpaid tax by the deadline can cause financial difficulties for themselves. If you are not aware, there is a 5% late payment penalty for any unpaid tax for the tax year 2020/21 if not paid by 1 April 2022. Interest of 3% is charged daily as normal from the due date for unpaid payments on account and balancing payments regardless of the waiver of late filings.
Tax payers can avoid this penalty by setting up payment arrangements as follows:
The 5% penalty can be avoided by setting up a time to pay arrangement before 1 April 2022.
For more information please visit: https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments
Agents cannot set this up for you. This will need to be done by the taxpayer themselves. The online service for this will close on 1 April 2022 for the tax year 2020/21.
Conditions apply (must owe £30,000 or less, no other tax debts or payment plans set up and be able to pay the debt off within 12 months). Please visit https://www.tax.service.gov.uk/pay-what-you-owe-in-instalments
Please note you will need your Gateway information to log in to arrange this.
If you owe over £30,000 or need a longer arrangement term then you can give HMRC a call on 0300 200 3822.