Enhanced TTP arrangement

Photo by Matthew Kwong on Unsplash

HMRC announced last week that they were scrapping the £100 late filing penalty for self-assessment tax returns, providing the return is filed online by 28 February.

However, the tax owing was still due for payment by the 31st January deadline, and interest is being charged on any outstanding payments at a rate of 2.6%.

If the tax owing has still not been paid by 28 February there will be a 5% late payment penalty, UNLESS a payment plan has been arranged before 3 March.

If you have not been able to file your return, we suggest that you pay an estimated amount to avoid these interest charges, and any penalties.

It is also possible to submit a return with estimated figures if you are unable to get all the required information. If you need to change your tax return after you’ve filed it, you can do so within 12 months of the original deadline or you can write to HMRC for any changes after that.

With HMRC data showing that 1.8m people missed the January 31 deadline for submitting their self-assessment tax return, they are offering enhanced Time to Pay arrangements. Those wishing to set up a payment plan to spread their tax bill into 12 monthly instalments must still submit their tax return and pay any outstanding balance.

See this link for further ways to pay your self-assessment tax.

It is also possible to set up a time-to-pay arrangement online if certain conditions have been met, see this link

Penalties will be charged as follows:

· £100 if a return is filed up to 3 months late

· Further fines of up to £10 a day after 3 months, up to a maximum of £900

Tax, accounting services for contractors, small high-growth businesses, and established SME’s

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