2020-21 Self Assessment Penalty Waivers
Late payment penalties will also be waived as long as the tax is settled in full by 1 April 2022 or a ‘Time to Pay’ arrangement is set up by then. However, interest on late payments will be chargeable as normal from 1 February 2022 and HMRC’s current interest rate is 2.75%.
Once a 2020-21 tax return has been submitted, a longer ‘Time to Pay’ arrangement can be set up for taxpayers that can’t make the payment in full by 1 April 2022. This can be done online for tax bills of up to £30,000 and those with more than that to pay can call the Self Assessment Payment Helpline on 0300 200 3822.
As HMRC have made it clear that the filing and payment deadline still remains 31 January 2022, we advise meeting this deadline where possible.