Self Evaluation taxpayers have simply over per week to pay any excellent tax liabilities in full or arrange a web based fee plan for the 2019 to 2020 monetary 12 months to keep away from incurring penalty costs, HM Income and Customs (HMRC) has urged.
Final month, HMRC mentioned that because of the impression of the COVID-19 pandemic, they have been giving Self Evaluation taxpayers extra time to pay their tax or arrange a fee plan with out dealing with a 5% late fee penalty cost, so long as preparations have been in place by midnight on 1 April.
Those that have but to settle their liabilities for the 2019 to 2020 monetary 12 months pays their tax invoice or arrange a month-to-month fee plan on-line at GOV.UK. They’ll pay on-line, through their financial institution, or by publish. Alternatively, establishing a Time to Pay association permits taxpayers to unfold the price of their Self Evaluation tax invoice into month-to-month instalments till January 2022.
Anybody anxious about paying their tax and unable to arrange a fee plan on-line ought to contact HMRC for assist and help and nearly 117,000 taxpayers have arrange a self-serve Time to Pay association on-line, totalling greater than £437 million.
There isn’t any change to the fee deadline and different obligations usually are not affected. Which means:
The fee deadline stays 31 January 2021 and curiosity shall be charged on late fee. The present charge of late fee curiosity is 2.6%
A 5% late fee penalty shall be charged if tax stays excellent, and a fee plan has not been arrange, by midnight on 1 April 2021. Additional late fee penalties are charged at 6 and 12 months (August 2021 and February 2022 respectively), on tax excellent the place a fee plan has not been arrange
Self Evaluation taxpayers who’re required to make Funds on Account and know their 2020 to 2021 tax invoice goes to be decrease than in 2019 to 2020 – for instance resulting from lack of earnings due to COVID-19 – can cut back their funds.
Concentrate on copycat HMRC web sites and phishing scams. Taxpayers ought to search ‘self evaluation’ on GOV.UK to get the right hyperlink for his or her Self Evaluation tax return on-line securely and freed from cost. In addition they should be alert if somebody calls, emails or texts claiming to be from HMRC, saying that they’ll declare monetary assist, are due a tax refund or owe tax. It may be a rip-off.