22nd February 2021
For self-assessment taxpayers who have not yet paid their January 2021 tax liability, a 5% late payment penalty would normally be charged by HM Revenue and Customs if the outstanding tax liability was not paid in full by 28th February 2021.
HMRC have now advised that due to Coronavirus, the 5% penalty will not now be charged if the tax liability is cleared in full by 1st April 2021 which gives taxpayers a further month to clear their tax liability.
Taxpayers need to clear their liability in full or agree a time-to-pay arrangement with HMRC. The time-to-pay arrangement needs to be set-up by midnight on 1st April 2021.
Interest will still be charged on late payments from 1st February 2021 onwards at the official interest rate.