Haven’t paid your 2020/21 tax bill!! Act now…
A 5% late payment penalty arises on the tax balancing payment and/or Capital gains tax paid late. The trigger date for the first late payment penalty for unpaid tax for tax year 2020/21 has been extended from the usual 30 days to 1 April 2022. Therefore, the 5% penalty can be avoided by paying any outstanding tax in full or by setting up a Time to Pay arrangement with HMRC by 1 April 2022.
The online Time to Pay self service available for taxpayers only (not agents) will close for 2020/21 payments on 1 April 2022.
Those that cannot set up the arrangement online because the amount due is too high (i.e. over £30k) or a longer-term arrangement is needed (i.e. over 12 months), should contact HMRC directly.
Further late payment penalties arise where the situation continues and no arrangement is in place with HMRC.
Please note that daily interest charges at 3% p.a. (3.25% from 5 April) will continue to apply automatically from the original due date.