According to HMRC, out of the 12.2 million customers expected to complete a return for this tax year, four million people still need to submit their completed Self Assessment tax return and make payments toward their amount due before the deadline of 31 January. To avoid interest accruing on your outstanding payments, pay any outstanding liabilities or set up a payment plan by the deadline.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Luckily, earlier this month, HMRC announced that late payment penalties would be waived for up to one calendar month. This means that if you are unable to file your return by the original deadline, you won’t be subject to a late filing penalty if you file by 28 February.
Additionally, if you cannot pay your liabilities on time by 31 January, you won’t receive a late payment penalty if you pay in full or set up a payment plan by 1 April.
Don’t forget COVID-19 grants
The 2020/21 return covers the time period during which you might have received grants or payments from COVID-19 support schemes, which will need to be included in your Self Assessment.
Additional support
HMRC is also offering additional help to support customers who need to complete their tax returns – from webinars and recordings to YouTube videos and guides, you can access these resources on the government’s website.
It’s important you ensure your tax payments are made, but it’s easy to get your tax payments taken care of. Depending on how much time you have before the deadline, there are options for payment available.
How to pay:
Same or next day
- Via your online bank account
- online or telephone banking
- CHAPS
- by debit or credit card online
- at the bank or building society (if opting for this method, you’ll need a paying-in slip from HMRC)#
3 working days
- BACS
- direct debit (make sure you already have this set up with HMRC)
- via cheque through the post
5 working days
- direct debit (make sure you already have this set up with HMRC)
There are options if you’d prefer to spread out your payments as there are payment plans available. If you are paying in full, allow yourself time to make your payment because website traffic kicks into high gear the closer you get to the deadline, which might cause some difficulties.
The deadline falls on a Monday this year, but if it ever falls on a weekend or a bank holiday, you’ll need to ensure your payment reaches HMRC on the last working day before the deadline. Make sure you leave yourself with enough time to pay the most convenient way.