Time to Pay proves popular!
More than 142,000 people have used a Time to Pay arrangement with HMRC to spread the cost of their personal tax bill since April 2021.
The deadline for Self Assessment Tax returns and tax payments was extended beyond the 31st January deadline for the 2020/21 Returns, to allow until the 1st April for any outstanding tax to be paid without penalties being incurred. The filing deadline for the Return itself was also extended, to the 28th February.
The Time to Pay arrangements have added up to £475 million in tax. These payments are made monthly by taxpayers owing less than £30,000 who were unable to pay their liabilities in full.
Anyone who was unable to pay in full but owed more than £30,000, a Time to Pay arrangement could still be made, but it had to be arranged direct with HMRC rather than using the online system.
Anyone with an unpaid liability at the 5th April 2022 will now face a 5% late payment penalty on the outstanding amount.
Now that last year’s liabilities are all settled, it’s time to think about this year’s Returns! If you need a reminder on what we may need to prepare your Return, please follow this link to see our recent post on the subject, or get in touch. The sooner it’s done, the sooner you know how much you have to pay next time around, and if you’re due a refund, you can get it into your bank rather than HMRC’s!