One week left to pay self assessment tax

Self-Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

 Wages, pensions, and savings are typically taxed automatically. Other income (including COVID-19 grants and support payments) must be reported on a tax return by individuals and businesses.

 Taxpayers have until April 1 to pay all tax due from their 2020 to 2021 tax return without incurring a penalty for late payment. If they are unable to pay in full, they still have time to set up an online payment plan that will allow them to break down the cost of their bill into manageable monthly installments.

Businesses and individuals who have filed their Self-Assessment tax return and owe up to £30,000 can use the online Time to Pay service. Without speaking to HMRC, they can set up a payment plan via GOV.UK.

The Self-Assessment deadline was January 31, but HMRC extended the deadline this year to provide consumers more time to file and pay their 2020/21 tax returns without incurring penalties.

 More than 11.3 million consumers had submitted by the 28th of February, with one million taking advantage of the extra time by filing in February.

HMRC advises people to be cautious if they are called unexpectedly by someone requesting money or personal information. Customers should always type in the entire internet address www.gov.uk/hmrc to acquire the exact link for securely and free online filing of their Self-Assessment return.

 GOV.UK has a comprehensive list of payment options for taxpayers paying their Self-Assessment tax bills.

Taxpayers can use the HMRC app to make secure Self-Assessment payments by connecting to their bank or paying by Direct Debit, personal debit card, or corporate/commercial credit/debit card.

 Since February 1, interest has been levied on all outstanding balances.

 If tax is not paid by midnight on April 1, 2022, and no payment plan has been established, a 5% late payment penalty will be applied. Where a payment plan has not been established, additional late payment penalties will be levied at the customary 6 and 12 month points (August 2022 and February 2023, respectively) on tax outstanding.

 Contact Cheylesmore Chartered Accountants for more information about self-assessment and payments.