Taxpayers who have not yet paid the tax due under Self Assessment for the 2020-21 tax year must either make payment in full or agree a time to pay arrangement with HMRC by 1 April to avoid late payment penalties.

In January 2022 HMRC announced that they would waive penalties for late filing and payment of 2020-21 Self Assessment returns and tax liabilities as long as returns were filed by 28 February and payments made by 1 April 2022.

As the payment deadline approaches taxpayers are reminded that if they require Time to pay they must have arrangements in place with HMRC ahead of the 1 April deadline.

  • Those with £30,000 or less to pay can do this online as long as they have filed their return.
  • Where the amount due exceeds £30,000 taxpayers are advised to call the Self Assessment Payment Helpline on 0300 200 3822.

Late payment penalties start at 5% of the tax due after 30 days.

Interest has already been accruing from 1 February 2022 at a rate of 2.75% to 21 February and 3% thereafter.

Useful guides on this topic

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 (subscriber version)
What are the steps in making an appeal? What should your appeal cover? What does recent case law say on this topic?

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

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