HM Insights

Self-assessment tax payment deadline deferred until 1 April 2021

HM Revenue and Customs (HMRC) have announced that self-assessment taxpayers will not be charged the 5% late payment penalty as long as they settle their tax or set up a payment plan by 1 April 2021.

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The payment deadline for self-assessment is 31 January and interest is charged from 1 February on any amounts outstanding.  Usually, a 5% late payment penalty is also levied on any outstanding tax as at 3rd March. But this year, following on from the extension to the submission date for returns, HMRC is giving taxpayers more time to pay or set up a payment plan. 

Taxpayers urged to set up a payment plan

HMRC’s chief executive Jim Harra encouraged anyone worried about paying their tax to “set up a payment plan to spread the cost into monthly instalments”. He also directed taxpayers to gov.uk for support for “anyone struggling to meet their obligations”.

Taxpayers using the online time to pay facility will be able to spread the cost of their self-assessment tax bill into monthly instalments until January 2022.

Self Assessment timeline

  • 31 Jan Usual self-assessment deadline (paying and filing)
  • 1 Feb Interest accrues on any outstanding tax bills
  • 28 Feb Last date to file any late tax returns to avoid a late filing penalty – 2021 only
  • 1 Apr All tax must be settled or a Time to Pay arrangement put in place, to avoid a late payment penalty;
  • 1 Apr Last date to set up a self-serve Time to Pay arrangement online

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Harper Macleod's Private Client team can assist with all matters related to personal taxation. 

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