Self-Assessments: late payment fines still apply, even when delaying your filing
HMRC have moved the deadline for online self-assessment filings from 31st January to 28th February 2022.
This move is designed to support people struggling in the wake of the Coronavirus pandemic.
It’s not all good news, as HRMC still expect the tax bill to be paid in full by 31st January, even if you’ve not yet submitted your return.
You won’t get a late filing penalty until after 28th February. But you will be charged late payment interest from 1st February, if you’ve not paid in full or agreed a payment plan with HMRC.
Late payment interest is 2.75% of your overdue tax bill and this is charged on a daily basis until you pay the full bill.
If you still haven’t paid in full by 1st April, there’s another 5% penalty added.
If you’re delaying your filing, how will you know how much to pay?
HMRC have online tools that help with estimating your bill, but they are unlikely to be 100% accurate. and this could cause problems.
If you guess and pay £100 for your tax liability and it turns out you should have paid £105, you will be charged late payment interest on the difference.
If you need to, you can explore some on the HMRC estimating tools at:
If you are struggling to pay your tax bill, the HMRC Time To Pay arrangements allows you to split payments across 12 months. To be able to set up a Time To Pay, you must file your self-assessment by 31st January. Another requirement is owing less than £30,000 in tax.
You can create your own arrangement through your Government Gateway account. To create a payment plan, visit: https://www.tax.service.gov.uk/pay-what-you-owe-in-instalments
To make sure you avoid any penalties, we advise submitting your self-assessment and paying in full, or agreeing a payment plan by 31st January.
If you have any questions about your self-assessment, our team will be happy to help.