Self Assessment Late Payment Penalties

HMRC: no late payment 5% penalty for self assessment taxpayers

HMRC have announced that they will not impose a 5% late payment penalty if taxpayers pay their tax or set up a payment plan by midnight on 1 April 2021. Daily interest charges of 2.6% p.a. will still be charged from 1 February 2021.

Income tax - The payment deadline for Self Assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 March but this year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.