HMRC reminds Self Assessment taxpayers of 10 day deadline

HMRC has reminded Self Assessment taxpayers that they have just over a week to pay any outstanding tax liabilities in full or set up an online payment plan for the 2019 to 2020 financial year to avoid incurring penalty charges.

Last month, the government announced that due to the impact of the Covid-19 pandemic, it would give Self Assessment taxpayers more time to pay their taxes or set up a payment plan without facing a 5% late payment penalty charge, as long as arrangements were in place by midnight on 1 April 2021.

Almost 117,000 taxpayers have set up a self-serve “time to pay arrangement” online, totalling more than £437m.

Speaking about the 5% waiver from the government, Graham Lamont, managing partner at Lamont Pridmore, said at the time: “It is great that taxpayers are being given the support they need during these difficult times. We are encouraging people in Cumbria and beyond to take action now on this offer if they are struggling to pay the taxes they owe.

“By paying in instalments, it should relieve the financial pressure at a time when many incomes have been adversely affected. Many people have deferred tax payments from previous periods in 2020, which is why the tax owed by many individuals is even greater this year.”

However, Lamont added that while penalties may have been “waived for now”, interest would continue to “accrue” on outstanding Self-Assessment tax payments, which is why taxpayers must try to pay the tax due “as soon as possible” using the new arrangements available.