Anyone who has not yet paid their self-assessment tax bill or set up a payment plan has one week left to do so to avoid a penalty.
Self-Assessment customers have until April 1, 2022 to pay their 2020/21 tax bill or set up an online payment plan to spread the cost in manageable monthly installments.
Unpaid balances are already generating interest. From February 1, it stood at 2.75% before rising to 3% on February 21. However, interest is expected to increase to 3.25% from April 5, 2022.
But for those who miss the April 1 deadline, they will be hit with a 5% penalty on the unpaid balance. Additional penalties apply at six months – August 2022 (5% of the tax you owe or £300, whichever is greater) and 12 months late – February 2023 (5% of the tax you owe or £300 £, whichever is greater, although in some cases you may have to pay up to 100% of the tax due).
The usual January 31, 2022 deadline for tax returns has been pushed back and HMRC has waived the late filing penalty for anyone submitting their return before February 28.
Myrtle Lloyd, chief executive of customer services at HMRC, said: ‘We understand that some customers might be worried about paying their self-assessment bill this year, and we want to support them. There’s still time to set up a payment plan – to see if you’re eligible, go to GOV.UK and search for ‘pay my self-assessment’.
The Payment deadline The service is available to businesses and individuals who have filed their self-assessment tax return and owe up to £30,000. They can set up a payment plan online at GOV.UK without speaking to HMRC.
If customers owe more than £30,000 or need more time to pay, they can call the Self-Assessment Payment Helpline on 0300 200 3822.