Today HMRC has announced that Self Assessment taxpayers will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1st April.

The payment deadline for Self Assessment is 31st January and interest will be charged from 1st February on any amounts outstanding.

The deadline has not changed, but this year, because of the impact of COVID 19, HMRC is giving taxpayers more time to pay or set up a payment plan.

Payment plans or payments in full must be in place by midnight on 1st April to avoid a late payment penalty.

The Time to Pay facility can allow taxpayers to spread the cost of their tax liabilities into monthly instalments until January 2022.

Self Assessment taxpayers who have yet to file their tax return should do so by 28th February to avoid a late filing penalty.