https://www.accountingweb.co.uk/tax/...ed-5-surcharge
As the impact of Covid-19 continues, taxpayers can dodge the first 5% surcharge as long as they pay their tax or set up a time to pay arrangement or a payment plan by 1 April 2021.
In normal years, the interest kicks in from 1 February on amounts outstanding and a late payment penalty is also charged at 5% of any unpaid tax that is still outstanding on 3 March.
HMRC’s 11th-hour decision to waive late filing penalties gave breathing space to the 1.8m taxpayers that didn’t make the 31 January payment deadline, but mounting interest still hung over them.
Taxpayers now have until 28 February to file any late tax returns and to prevent being charged a late filing penalty of £100. They then have until 1 April to pay any outstanding tax or make a time to pay arrangement and sidestep a late payment penalty.
As the impact of Covid-19 continues, taxpayers can dodge the first 5% surcharge as long as they pay their tax or set up a time to pay arrangement or a payment plan by 1 April 2021.
In normal years, the interest kicks in from 1 February on amounts outstanding and a late payment penalty is also charged at 5% of any unpaid tax that is still outstanding on 3 March.
HMRC’s 11th-hour decision to waive late filing penalties gave breathing space to the 1.8m taxpayers that didn’t make the 31 January payment deadline, but mounting interest still hung over them.
Taxpayers now have until 28 February to file any late tax returns and to prevent being charged a late filing penalty of £100. They then have until 1 April to pay any outstanding tax or make a time to pay arrangement and sidestep a late payment penalty.
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