Late Payment Penalties - Personal Tax

Chris Stedman
Senior Partner
February 22, 2021
3 min read

If you miss paying your personal tax payment, HMRC are quick to issue penalties. How much could you be charged?

Normal Rules

HMRC charge automatic tax-related penalties for late payment of personal tax.  It works like this:


Henry had a tax liability of £6,000 due for payment by 31 January.  He managed to pay this on the following dates:

In normal times there would have been no penalty attaching to the first payment.  By 3rd March tax of £3,500 would have been outstanding and a late payment penalty of £175 would be imposed.

Government Announcement

HMRC has just announced that they will wave the initial 5% late payment penalty provided:

  1. The taxpayer has paid all his tax by 1st April; or
  2. The taxpayer has made a Time to Pay arrangement by 1st April.

Note – for a Time to Pay arrangement to be effective it must be in place by midnight on 1st April.

HMRC help and support is available on 0300 200 3822.

The Self-Serve Time to Pay facility allows taxpayers to spread the cost of their tax liabilities until January 2022.  Taxpayers can set up a payment plan online on Gov.UK.

Or call C&H Stedman for help.C&H Stedman
For more info, give us a call on 01442 202650

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