We are now coming into the final week for self assessment taxpayers to pay outstanding tax liabilities associated with their 2020/21 Tax Returns, without too much additional cost. Anything paid later that 31 January 2022 will, however, incur interest.
If the payment is not made by 1st April, taxpayers will be faced with a penalty based on 5% of the tax outstanding. Further penalties may be incurred beyond this date, if the tax remains unpaid.
You can pay your tax bill in a number of ways, which are listed on the gov.uk website here:
When making your tax payment, you need to ensure that you use your Unique Taxpayer Reference (UTR) number as a payment reference, to enable HMRC to allocate the payment against your record.
If you cannot afford to pay your tax bill by 1st April, you can set up a payment plan (known as a Time To Pay arrangement) with HM Revenue and Customs. If you owe less than £30,000, and plan to pay it back in a period within twelve months, you may be able to set up your payment plan online through your Government Gateway account. Alternatively, you can set up the payment plan by telephoning HMRC on 0300 200 3822.
If you require any assistance with your tax affairs, please contact one of our offices or speak to your usual contact at Whitings.
Disclaimer - All information in this post was correct at time of writing.