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Self assessment late payment penalty wavered if payment plan in place

Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1st April, HMRC has announced.

The payment deadline for Self Assessment is 31st January and interest is charged from 1st February on any amounts outstanding. Normally, 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 impact of the Covid-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.

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

Jim Harra, HMRC’s chief executive said: “Anyone worried about paying their tax can set up a payment plan to spread the cost into monthly instalments. Support is available at GOV.UK to help anyone struggling to meet their obligations.”

Visit GOV.UK to find out more about Self Assessment.

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