Anna’s Accountancy Alerts – Week 52 (29th March 2021- 4th April 2021)

Piggy bank with calculator

Set up self assessment payment plans

Self assessment taxpayers have until 1 April to pay any outstanding tax liabilities in full or set up an online payment plan for the 2019 to 2020 financial year to avoid incurring penalty charges

You can pay your tax bill online, via their bank, or by post.

Alternatively, you can set up a Time to Pay arrangement which allows taxpayers to spread the cost of their self assessment tax bill into monthly instalments until January 2022.

The self-serve Time to Pay data is for online payment plans created between 1 October 2020 and 21 March 2021. This system allows taxpayers to set up a payment plan online to help them manage the cost of their tax bill up to £30,000.

Taxpayers will be able to pay their tax bill in monthly instalments, up to January 2022.

For those with bills over £30,000, individual repayment arrangements need to be negotiated with HMRC directly.

The payment deadline remains 31 January 2021 and interest will be charged on late payment. The current rate of late payment interest is 2.6%

A 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, by midnight on 1 April 2021.

Tax day announcements

On 23 March 2021, dubbed “tax day”, the governmentpublished a document containing 30 announcements relating to tax policy.

Some of the content suggests that the UK tax framework will be revised over the coming years.

Note the intention to move the payment dates for income tax and corporation tax for small companies closer to the point that the underlying income is received, i.e. real-time payment.  This is on a par with the Making Tax Digital initiative.

National Minimum Wage Update

HMRC employers’ guide to the National Minimum Wage has been updated.

All employers should check whether they are compliant and take the appropriate payroll action.

You can find further information on GOV.UK.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.