One week left to pay self-assessment tax bills

25th March 2022 | News

1st April deadline

HMRC has warned taxpayers that they have just one week left to pay their self-assessment tax bills without incurring a penalty.

Taxpayers have until 1st April 2022 to pay all tax due from their 2020-21 tax return and avoid receiving a late payment penalty. However, if taxpayers are concerned they might not be able to pay in full by this date, as long as an online payment plan is set up before the deadline, no additional charges should be incurred.

Paying outstanding tax

The online Time to Pay system is available for businesses and individuals who have filed their self-assessment tax return and owe up to £30,000. The online payment plan system means that taxpayers can spread the cost of their tax bill into manageable monthly instalments. It can be set up online at gov.uk without the need to contact HMRC.

However, if taxpayers owe more than £30,000 or are going to require that the costs are spread over a long period, they will need to speak to HMRC directly and discuss their options by calling the self-assessment helpline on 0300 200 3822.

Taxpayers can make secure self-assessment payments through the HMRC app by either connecting to their bank to make the payments or paying by direct debit, personal debit card or business debit/credit cards.

Myrtle Lloyd, Director General for Customer Services at HMRC said the following:

‘We understand some customers might be worrying about paying their self-assessment bill this year, and we want to support them. There is still time to set up a payment plan – to see if you’re eligible go to gov.uk and search ‘pay my self-assessment’.’

Deadline extension

The usual self-assessment filing deadline is 31st January, but both this year and the previous year, HMRC gave taxpayers until 28th February to file their tax returns. This is because they acknowledged the pressures Covid put on people, businesses, and tax agents. Therefore, if you filed by 28th February, you would not face the £100 penalty charge.

However, interest has been applied to all outstanding balances since 1st February, which is something to be mindful of if you are a customer looking to pay your bill before the 1st April deadline.

If you are unfortunately not able to pay your tax bill and have not set up a payment plan by midnight on 1st April 2022, a 5% late payment penalty will be charged. Further late payment penalties will be issued at six and 12-month points (August 2022 and February 2023 respectively) on tax outstanding where a payment plan has not been created.

As always, if you would like any further information regarding the above, please feel free to contact our offices by email info@williamsoncroft.co.uk.

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

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