HM Revenue & Customs (HMRC) will charge a 5% penalty on any 21/22 Self Assessment income tax liabilities not paid by 3 March 2023. This is because in most cases, if you owe tax and other liabilities for the 2021/22 tax year, then the due date for payment is 31 January 2023. If you also owe payments on account for 2022/23, then the first of these is also payable on 31 January 2023. However, these are not subject to late payment penalties but they are subject to interest.
If you have not paid, and can’t meet the deadline, you can contact HMRC for a time to pay arrangement. Interest will still be charged, but a payment agreement will avoid the 5% penalty.
You can set up a Self Assessment payment plan online if you:
- have filed your 2021/22 tax return
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay your debt off within the next 12 months
- do not have any other payment plans or debts with HMRC
If you cannot set up a payment plan online you can contact HMRC on 0300 200 3835 and the telephones lines are open Monday to Friday: 8am to 6pm.