Set up Self Assessment payment plans by 1st April 2021

Self Assessment taxpayers have until 1st April 2021 to pay any outstanding tax liabilities in full or set up an online payment plan to avoid a 5% late payment penalty.

Self Assessment taxpayers have just over a week to pay any outstanding tax liabilities in full or set up an online payment plan for the 2019 to 2020 financial year to avoid incurring penalty charges.

Last month, HMRC said that due to the impact of the COVID-19 pandemic, they were giving Self Assessment taxpayers more time to pay their tax or set up a payment plan without facing a 5% late payment penalty charge, as long as arrangements were in place by midnight on 1 April 2021.

Those who have yet to settle their liabilities for the 2019 to 2020 financial year can pay their tax bill or set up a monthly payment plan online at GOV.UK. They can pay online, via their bank, or by post. Alternatively, setting up a Time to Pay arrangement allows taxpayers to spread the cost of their Self Assessment tax bill into monthly instalments until January 2022.

Anyone worried about paying their tax and unable to set up a payment plan online should contact HMRC for help and support on 0300 200 3822.

Almost 117,000 taxpayers have set up a self-serve Time to Pay arrangement online, totalling more than £437 million.

There is no change to the payment deadline and other obligations are not affected. This means that:

  • the payment deadline remains 31 January 2021 and interest will be charged on late payment. The current rate of late payment interest is 2.6%
  • a 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, by midnight on 1 April 2021. Further late payment penalties are charged at 6 and 12 months (August 2021 and February 2022 respectively), on tax outstanding where a payment plan has not been set up

Self Assessment taxpayers who are required to make Payments on Account and know their 2020 to 2021 tax bill is going to be lower than in 2019 to 2020 – for example due to loss of earnings because of COVID-19 – can reduce their payments. Visit GOV.UK to find out more about Payments on Account and how to reduce them.

Be aware of copycat HMRC websites and phishing scams. Taxpayers should search ‘self assessment’ on GOV.UK to get the correct link for their Self Assessment tax return online securely and free of charge. They also need to be alert if someone calls, emails or texts claiming to be from HMRC, saying that they can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK for information on how to recognise genuine contact.

Further infromation

Visit GOV.UK to find out more about Self Assessment.

The Self-serve Time to Pay data referenced is for online payment plans created between 1st October 2020 and 21st March 2021.

Self-serve Time to Pay allows taxpayers to set up a payment plan online to help them manage the cost of their tax bill up to £30,000. Taxpayers will be able to pay their tax bill in monthly instalments, up to January 2022.

If someone’s Self Assessment debts are more than £30,000, or they need longer to pay a debt in full, they cannot set up a Time to Pay arrangement online. But they may still be able to set up a Time to Pay arrangement by calling the Self Assessment Payment Helpline on 0300 200 3822.

PAYadvice.UK 22/3/2021

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