HMRC Slashes Self Assessment Penalty Deadline Amid Covid Chaos
Pay Your Self Assessment Tax by April 1 – Or Face No Penalty
The official Self Assessment payment deadline remains 31 January, but this year HMRC is easing the pressure. Thanks to the ongoing impact of Covid-19, taxpayers now have until midnight on 1 April to pay their tax bill or arrange a payment plan without facing the usual 5% late payment penalty. Interest on unpaid amounts still kicks in from 1 February, so paying in full remains the best option to avoid extra charges.
Easy Online Payment Plans Stretch Until January 2022
HMRC’s online “Time to Pay” service lets folks spread their Self Assessment bill into monthly instalments, giving much-needed breathing space during these tough times. Over 97,260 taxpayers have already signed up, arranging payments totalling more than £367 million.
Jim Harra, HMRC’s Chief Executive, said: “Anyone worried about paying their tax can set up a payment plan to spread the cost into monthly instalments. Support is available at GOV.UK to help anyone struggling to meet their obligations.”
How to Pay and Reduce Payments on Account
- Pay in full via online banking, HMRC’s website, your bank, or by post.
- If your income has dropped due to Covid-19 and you expect a lower 2020-21 tax bill, you can reduce your “Payments on Account.”
- Visit GOV.UK for detailed info on how to pay and adjust Payments on Account.
Deadline Alert: File Your 2019-20 Return by 31 January
Still haven’t filed your 2019-20 Self Assessment tax return? You must get it done before 31 January to dodge a hefty £100 late filing penalty.
Beware HMRC Scams: Stay Safe Online
Scammers love tax season. Only use official GOV.UK links when filing your tax return. Don’t trust suspicious calls, emails, or texts claiming to be from HMRC offering refunds or demanding payment. If in doubt, check GOV.UK for advice on recognising genuine HMRC contacts.
For help setting up payment plans or any tax worries, contact HMRC on 0300 200 3822.
