Self-assessment Tax Payments

Last updated Monday 22 February 2021 - 09:16

Self-Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April 2021. The payment deadline for Self-Assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Ordinarily, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 March. However, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan in respect of the amount otherwise due on 31 January 2021.

All taxpayers who have taxes due in January 2021 are able to apply for more time to pay.  This builds upon the Self-Assessment deferral that was announced in July 2020.

Taxpayers who have up to £30,000 of Self-Assessment liabilities can utilise  HMRC’s self-service Time to Pay facility.  This may enable them to secure a payment plan for an additional 12 months.  Anyone who finds they are unable  to utilise this service or, are unable to pay their tax bill on time can use HMRC’s Time to Pay Self-Assessment helpline to agree a payment plan with them direct.

The original Self-Assessment deferral announced in July 2020 saw tax payments delayed until 31 January 2021.  This meant that the second payment on account towards an individual’s 2019/20 tax liability was delayed by 6 months.

Subject to the impact of coronavirus on their profits/income, individuals may wish to contact their Ensors representative to discuss the possibility of making a claim to reduce the 2019/20 payments on account where this will generate a partial refund of the first payment on account made in January 2020.