HMRC has given self-assessment taxpayers time to pay any tax they own in full or set up a payment plan, so they don't face a 5% late payment penalty charge.
"Arrangements must be in place by midnight on the 1st of April 2021!"
Those who haven't settled their liabilities for the 2019/20 financial year can pay in full online, via their bank or via the post. Setting up a Time to Pay arrangement allows the tax payments to be spread into monthly instalments, paid between April 2021 and January 2022.
Payment plans are available for anyone with a tax bill of up to £30,000; anyone who owes more than that will need to make separate arrangements with HMRC directly.
"So far, nearly 117,000 taxpayers have used the Time to Pay system, which totals repayments of over £437m!"
Any self-assessment taxpayer who usually makes Payments on Account and knows their 2020/21 tax return is going to be lower than the 2019/2020 one due to a loss of earnings caused by COVID-19 can reduce their payments.
Self-assessment payment plans can be set up online by logging in to the Government gateway.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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