We can all breathe a sigh of relief now that the January submission deadline for UK tax returns up to 5 April 2025 has passed and been met. However, the next deadline is, in fact, one not everyone is aware of. While the payment of any tax due for the period to 5 April 2025 is 31 January 2026, and interest accrues from this date until it is paid, taxpayers seem to forget that penalties also apply for late payment.
If the tax due by 31 January 2026 is not paid by 2 March 2026, a 5% penalty will be applied on top of the interest meaning more money to HMRC that is unnecessary.
There are also two further penalty payment deadlines: these are 6 months from the due date and then at 12 months from the due date, and again at these times a 5% penalty will be applied.
Should you have any worries on paying your tax, the best course of action is to contact HM Revenue and Customs (HMRC) before 2 March and request a payment plan. This will mean you have a clear pathway for how to pay your tax, and it will stop penalties being applied; however, interest will however still accrue. If your liability is less than £30,000 the request can be done online and payments made by direct debit. If you cannot pay your tax bill on time: Setting up a payment plan - GOV.UK
If your liability is over £30,000, it is necessary to phone HMRC and the number to call is 0300 200 3831.
One condition is that you must have completed and submitted all outstanding tax returns. This so HMRC know the amount of tax that is outstanding.
If you need any assistance, contact us at M&S for help and guidance.
