It’s that time of year again when the self-assessment tax return deadline is just around the corner.
The payment deadline for outstanding self-assessment tax bills is Monday 31st January and interest will be charged on unpaid amounts from the following day, Tuesday 1st February. Late payment interest is charged at 2.75%, which can really add up over time and significantly affect a business owner’s cash flow.
Due to the disruptions and stress caused by the pandemic, this year HMRC is giving self-assessment taxpayers a little more time to either pay or set up a payment plan without additional penalties being imposed. Providing you’ve paid your tax bill or set up a payment plan by Friday 1st April, the late payment penalty will not take effect. However, if a business owner fails to do this on time, an extra 5% will be added to their tax bill, along with further penalties charged after six and twelve months.
You can set up a Time to Pay arrangement by calling HMRC on 0300 200 3822.
We’re here to help you manage, plan and save on tax. To find out more, please call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in our contact form.
