2019-20 Self-Assessment – Late Payment Penalties

Shortly before the 31 January 2021 filing deadline for 2019-20 self-assessment tax returns, HM Revenue & Customs announced that the late filing penalty of £100 would not be charged to any taxpayer who submits their 2019-20 by 28 February 2021.

The deadline for making payment was still 31 January 2021 and interest would be charged by HM Revenue & Customs from 1 February 2021 until the date of payment was settled.

Ordinarily, where a tax liability remained unpaid as at 28 February 2021, HM Revenue & Customs would charge a 5% late payment penalty, however, HM Revenue & Customs have just announced a further relaxation to the late payment penalty regime to give taxpayers more time to settle their tax liability in full or to set-up a time to pay arrangement.

The 5% late payment penalty will now not be charged if the tax liability is paid in full or a time to pay arrangement is set-up by 1 April 2021. The time to pay arrangement can be set-up online if your tax liability as at 31 January 2021 was below £30,000. The online time to pay arrangement enables your tax liability to be paid in monthly instalments until 31 January 2022.

If your tax liability as at 31 January 2021 is more than £30,000 then you will need to contact HM Revenue & Customs to discuss the possibility of setting up a time to pay arrangement.

If you still have not settled your tax liability, you can set-up a time to pay arrangement online or by calling HM Revenue & Customs on 0300 200 3822.

Even though the penalty for late payment of the tax liability has been delayed enabling taxpayers more time to pay, interest will still be charged on the unpaid liability.

If you still need to submit your 2019-20 tax return, make payment to HM Revenue & Customs or set up a time to pay arrangement, you should do so as soon as possible to ensure the late filing and late payment penalties are not levied.

Here at Plus Accounting we will be very happy to help you with the preparation of your self-assessment tax return with our personal tax compliance service.

Author: Plus Accounting

Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

Date Published: 24 February 2021

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