HMRC has announced that the 5% late payment surcharge will not apply this year from the 3rd March and instead only arises from the 1st April.

The surcharge will only apply to any unpaid tax as at the 1st April 2021.  This is an important revision to the previous announcement extending the tax return filing deadline, as the concession did not extend to payment of the tax liability.

If you are unable to pay your liability by the 1st April, providing a Time to Pay Arrangement has been set up, no surcharge will apply.

It is important to note that no changes have been made to the application of late payment interest, which is still charged at 2.6% on amounts unpaid from the 1st February.  This applies regardless of whether a payment plan has been set up or not.