HMRC delays late payment 5% charge

The payment deadline for self assessment was 31 January 2021 and It has been extended to 28th February 2021. Interest is charged from 1 February 2021 on any tax amounts outstanding.

A 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3rd March. But this year, because of the Covid-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.

Taxpayers can pay their tax or set up a monthly payment plan online at www.gov.uk. They need to do this by midnight on 1 April to prevent being charged a late payment penalty.

The online instalment facility will allows taxpayers to spread the cost of their self assessment tax bill into monthly instalments until January 2022.

HMRC recognises the pressure affecting taxpayers due to the covid-19 and encourages anyone worried about paying their tax and unable to set up a payment plan online to contact HMRC for help and support on 0300 200 3822 which indicate they may be more flexible than normal years.

However, interest will still be charged on outstanding fee. If you are able to pay in full then it would be good idea to pay it. HMRC accept payment online, bank transfer and in the post office.