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HMRC has announced that Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April.

The payment deadline for Self Assessment is 31 January and interest is charged from 1 February on any amounts outstanding.

Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 March. But this year, because of the impact of the coronavirus (COVID-19) pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.

Taxpayers can pay their tax bill or set up a monthly payment plan online and are required to do this by midnight on 1 April to prevent being charged a late payment penalty. The online Time to Pay facility allows taxpayers to spread the cost of their Self Assessment tax bill into monthly instalments until January 2022.

Jim Harra, HMRC’s Chief Executive, said:

‘Anyone worried about paying their tax can set up a payment plan to spread the cost into monthly instalments. Support is available at GOV.UK to help anyone struggling to meet their obligations.’

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Following the Chancellor’s announcement yesterday, the Job Retention Scheme has been extended until 30 September 2021.

From 1 July 2021 the scheme will begin to wind down, the different stages of the winding down process of the scheme are as follows:

  1. Until 30 June 2021, the government will continue to pay 80% of the furloughed employees’ wages for the hours not worked.
  2. From 1 July 2021, the government will pay 70% of the furloughed employees’ wages for the hours not worked, with employers required to make up the additional 10% of wages.
  3. From 1 August 2021, the government will pay 60% of the furloughed employees’ wages for the hours not worked, with employers required to make up the additional 20% of wages.

Throughout all the changes to the scheme, the employees whilst furloughed, will continue to be entitled to 80% of their wages.

As under the current JRS, flexible furloughing will be allowed in addition to full-time furloughing.

Please do not hesitate to contact us if you have any queries with regards to the Job Retention Scheme.