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HMRC self-assessment tax reaches deadline in one week

The tax body earlier revealed that penalties would be delayed a month to 1 April in support of those impacted by Covid-19

The deadline for taxpayers to pay their self-assessment tax bill for 2019/20 before HMRC commences its late payments penalties has reached one week away.

The tax body earlier revealed that penalties would be delayed a month to 1 April in support of those impacted by Covid-19.

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Moreover, outstanding tax bills payments charged six and 12 months after the deadline have also been pushed back to August 2021 and February 2022.

However, these individuals have incurred an interest rate of 2.6% since the self-assessment deadline passed on 31 January 2021.

Graham Boar, partner at UHY Hacker Young said: “Taxpayers are running out of time to pay their tax bill before they are hit with a late payment penalty.

“The past success rate of appealing late payment penalties suggests that taxpayers shouldn’t panic if they are incorrectly charged with a penalty. HMRC has proven that it will hold its hands up if it’s made a mistake.”

The accountancy firm has urged those who are not yet in a position to pay their bills to discuss a time to pay arrangement with HMRC is soon as possible.

Boar added: “HMRC is actively encouraging taxpayers to make use of time to pay arrangements, this could be a lifeline for individuals who know they will struggle to pay their tax bill on time. If they choose to ignore it, they’ll only see the money owed increase even further.”

While HMRC imposed an initial £275m of penalties last year, 60% was cancelled following taxpayer appeals.

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