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Mar 29, 2022

Penalties nearing for unpaid tax

Self-assessed taxpayers have less than a week to pay their tax bill or set up a time-to-pay arrangement with HMRC, otherwise they will be facing additional costs.

Any taxpayers who have outstanding payments to make to HMRC for their 2020/21 tax returns are being urged to either make an arrangement or pay it off before 1 April 2022.

In light of the impacts of COVID-19, the usual penalty for late filing and payment of self-assessment tax was waived this year.

Those who missed the filing deadline on 31 January had until 28 February to file their return, and 1 April to pay their tax, without receiving a fine.

The agreement protects the taxpayer from late-payment fees within those deadlines but not from late payment interest, which is currently charged at 3%.

Tom Henderson, technical officer for LITRG, said:

"If you have not yet finalised your self assessment tax affairs for 2020/21, including submitting your tax return and settling any payment due, you should do so before 2 April 2022 to avoid potentially triggering a late-payment penalty.

"This penalty will not be levied if the amount owing is included in a time-to-pay arrangement, but this needs to be arranged before 2 April 2022 and the tax return must be submitted first."

Ask us about your self-assessment tax bill.