If you miss paying your personal tax payment, HMRC are quick to issue penalties. How much could you be charged?
Normal Rules
HMRC charge automatic tax-related penalties for late payment of personal tax. It works like this:
Example
Henry had a tax liability of £6,000 due for payment by 31 January. He managed to pay this on the following dates:
In normal times there would have been no penalty attaching to the first payment. By 3rd March tax of £3,500 would have been outstanding and a late payment penalty of £175 would be imposed.
Government Announcement
HMRC has just announced that they will wave the initial 5% late payment penalty provided:
- The taxpayer has paid all his tax by 1st April; or
- The taxpayer has made a Time to Pay arrangement by 1st April.
Note – for a Time to Pay arrangement to be effective it must be in place by midnight on 1st April.
HMRC help and support is available on 0300 200 3822.
The Self-Serve Time to Pay facility allows taxpayers to spread the cost of their tax liabilities until January 2022. Taxpayers can set up a payment plan online on Gov.UK.
Or call C&H Stedman for help.C&H Stedman
For more info, give us a call on 01442 202650
