HMRC have announced that Self Assessment taxpayers will not be charged the usual 5% late payment penalty provided that they pay their tax or set up a payment plan by 1 April 2021.

  • Taxpayers were due to make any 2019-20 balancing payment no later than 31 January 2021. 
  • Amounts not paid and outstanding on 3 March 2021 would usually be subject to a 5% Late payment penalty
  • HMRC have confirmed that providing outstanding tax is paid or a Monthly payment plan set up by midnight on 1 April 2021, no 5% late payment penalty will be charged.  
    • Interest will continue to be charged from 1 February 2021.  
  • It was previously Announced that Self Assessment taxpayers would not be charged a Late filing penalty for missing the 31 January 2021 filing deadline, providing they submit their 2019-20 tax returns by 28 February 2021.
  • For help and support about paying tax liabilities, HMRC can be contacted on 0300 200 3822. 

Useful guides on this topic

Self Assessment: penalties
You might be shocked to see how many different penalties apply to this regime. What penalties are due for outstanding tax returns? What penalties are due for late payment? What are all the different special rules for Covid-19?

Penalties: Late Payment
What penalties are charged when tax is paid late? 

Time to Pay agreement
Business and self-employed taxpayers with outstanding tax liabilities may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. 

How to appeal a tax penalty
What are your rights of appeal if HM Revenue & Customs (HMRC) have assessed you for a tax penalty?

Appeals: Grounds for appeal toolkit
What grounds are there to appeal a tax penalty? How can you word a tax appeal? Can you appeal HMRC errors? What is a reasonable excuse?

Grounds for appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal?

External link

HMRC press release: More help for Self Assessment taxpayers

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