HMRC imposed £108m in penalties for late payment of
self-assessment tax for 2018/19, reports accountancy firm Moore. The firm
points out that for 2019/20 many taxpayers will face a tax bill twice the
normal size, where their 31 July 2020 payment on account has been deferred.
Taxpayers are advised to agree arrangements with HMRC before the 31 January
2021 deadline, for example by setting up time to pay arrangements (using HMRC’s
online service for liabilities up to £30,000), in order to avoid late payment
penalties.
Lucienne Parry, partner at Moore, said: ‘With the freeze on
penalties for late tax payments ending in a matter of months, taxpayers need to
ensure they can pay their next bill ... HMRC is offering a helping hand during
the current pandemic but they won’t help you if you don’t approach them.’
HMRC imposed £108m in penalties for late payment of
self-assessment tax for 2018/19, reports accountancy firm Moore. The firm
points out that for 2019/20 many taxpayers will face a tax bill twice the
normal size, where their 31 July 2020 payment on account has been deferred.
Taxpayers are advised to agree arrangements with HMRC before the 31 January
2021 deadline, for example by setting up time to pay arrangements (using HMRC’s
online service for liabilities up to £30,000), in order to avoid late payment
penalties.
Lucienne Parry, partner at Moore, said: ‘With the freeze on
penalties for late tax payments ending in a matter of months, taxpayers need to
ensure they can pay their next bill ... HMRC is offering a helping hand during
the current pandemic but they won’t help you if you don’t approach them.’
