Self Assessment Payment Deadline – Update

Tax return season is a stressful time for all business owners but in the last 12 months, with the advent of the Coronavirus Pandemic, has seen businesses hit harder than ever before.

This has left many dreading carrying out their Self Assessments more than usual, and what’s more, there have been some relatively big changes to payment deadlines and the introduction of new ways to pay too. 

While these measures are designed to ease the tax burden businesses are facing, they can be quite confusing to people who aren’t used to dealing with tax returns every day, so here is what you need to know:


Payment Deadline

Whether you’re self-employed or a business owner you might be wondering how the new self-assessment payment deadline update affects you. Currently, the deadline to carry out your self-assessment tax return is the 31st of January, and interest will be charged on any tax that has been left unpaid from the 1st of February.  

In previous years HMRC would also levy a 5% late payment (with a minimum penalty of £100) for any overdue tax. However, as of March 3rd, this has now been deferred due to the Covid-19 pandemic. As such taxpayers will now be given more time to pay or time to set up a payment plan with HMRC. Taxpayers can pay their tax bill or set up a monthly payment plan online at GOV.UK but failing to do so by the 1st of April will result in being charged the late payment fee. 

What are Time To Pay Arrangements?

In response to the profound effect, coronavirus has had on some businesses the government announced in March 2020 so-called time to pay arrangements. If your business has outstanding liabilities and pays tax to HMRC you may be able to benefit from a time to pay arrangement.

These arrangements allow the tax you owe to be spread out over 12 monthly instalments until January 2022. So far over 97000 taxpayers have used this facility that can be set up online. If you have an issue paying your tax and are unable to set up a plan online, you should contact HMRC for help and support on 0300 200 3822.

I’m confused about my Self Assessment

If you need help with your self-assessment tax return then the best thing you can do is to consult an accredited accountant with in-depth knowledge of tax, they will be able to help you find the best solution for your needs. 

At Park Lane Accountants we love working with individuals and business owners to make sure that your tax affairs don’t keep you awake at night. Please don’t hesitate to get in touch via phone or email to see if we could help you.