HMRC have announced that the 5% late payment penalty which usually applies on 28 February will not be charged, provided individuals do one of the following before 23:59 on 1 April 2021:
This is a welcome announcement for those feeling the financial effects of the pandemic, although interest will still be applied at a rate of 2.6% pa.
It is also important to note, that this is not a further extension to the tax return filing deadline, and late filing penalties of £100 will be applied if tax returns are not submitted before 28 February. Also it continues to be the case that the Time to PAY Arrangement is still only applicable for liabilities under £30,000.
Chris Leslie, Tax Senior