HMRC gives self-assessment taxpayers more time to pay but payment plan needs to be in place by 1st April

23rd March 2021

Self-assessment taxpayers are being given further assistance to counter the impact of the Covid-19 pandemic in that HMRC is giving those who have yet to settle their liabilities for the 2019 to 2020 financial year the option to set up a monthly payment plan and avoid incurring penalty charges.

However, in order to avoid the 5% late payment penalty charge, arrangements need to be in place by midnight on 1 April 2021. HMRC are encouraging taxpayers to take action now, if not already done so, and set up an online payment plan at gov.uk.

This system allows taxpayers to set up a payment plan online to help them manage the cost of their tax bill up to £30,000. Those owing more than that amount, need to contact HMRC directly to negotiate individual repayment arrangements.

If you are concerned about paying your tax and are unable to set up a payment plan online, please contact your usual Whittles contact or call HMRC for help and support on 0300 200 3822.