HM Revenue

Late Payment of Self-Assessment Penalties Update

24th February 2021

The normal deadline for making a self-assessment payment is 31 January following the end of the tax year. If the payment is late, HMRC begin to levy late payment interest. Furthermore, if the payment was made 30 days after the original deadline HMRC would levy a 5% surcharge on the outstanding payment due.

However due to the current pandemic, HMRC have very recently announced that this surcharge will not apply until 1 April 2021 for 2019/20 tax payments still outstanding.

Please note the above surcharge does not apply to payments on account due for the following year (2020/21). If these payments are late HMRC will still charge late payment interest.

As far as we understand, surcharges will also remain (as per usual) if tax payments are made 6 months and 12 months late.

Setting up a Payment Plan

If a taxpayer feels they cannot make their tax payment, HMRC have also given them the option to set up a monthly payment plan online. Applications for this must also be made by 1 April 2020 in order to avoid the 5% late payment surcharge.

This plan may be set up online by following the link. 

A payment plan may only be set up online if the amount owed with HMRC is under £30,000, your tax returns are up to date and you have no other payments plans or debts with HMRC.

If you are unable to set up a plan online for whatever reason, then HMRC recommended that you contact them on 0300 200 3822.

Please contact us if you have any questions regarding the above.

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