One Week Remains To Start Tax Return Payment Plan

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May 24th 2022
Tax Week 7
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One Week Remains To Start Tax Return Payment Plan

Avoid 5 percent penalty by setting up Time to Pay plan before deadline.

Taxpayers who have outstanding tax liabilities and wish to avoid a 5 percent surcharge on the outstanding amount must pay in full or set up a payment plan by April 1st.

The payment deadline has been set as midnight April 1st, with taxpayers opting for the Time to Pay scheme able to spread their bill over a monthly arrangement.

So far nearly 120,000 people have opted to make monthly payments with the average outstanding tax bill nearly £4,000. However, payment plans can be arranged for tax bills up to £30,000 with payments made in equal installments running until January 2022.

Payment plans for larger amounts or for differing circumstances require contact with HMRC (telephone the HMRC helpline on 0300 200 3822).

If a payment plan is not set up, or the outstanding bill is not paid in full, further surcharges are applied in August 2021 and February 2022.

You can reduce your tax bill if you know your future earnings are going to be lower than in the previous year - contact HMRC to reduce payments on account.

Two million tax returns were yet to filed past the regular January deadline this year. A £100 automatic late fee would only be applied if still not filed past the end of February.

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