HMRC has announced that self-assessment taxpayers will not be charged an initial 5% late payment penalty, if they pay their tax or set up a Time to Pay arrangement by 1st April. A Time to Pay arrangement allows for payments to be made in monthly installments up until January 2022.
Whilst the late payment penalty has been waived, HMRC has confirmed that interest charges still apply from 1st February for tax due on 31st January 2021.
Payment plans or full payments must be made by midnight on 1st April to avoid a late payment penalty.
Any self-assessment taxpayers yet to file their tax return for the 2019/20 tax year, are reminded to do so by 28th February, to avoid a late filing penalty.
For further information visit the government website.