A 5% late payment penalty will be imposed on those who do not pay their 2022/23 self assessment bill by 1 March 2024. The penalty can be avoided if a time to pay arrangement is agreed with HMRC before then.
ICAEW warned that in light of HMRC’s ongoing issues with poor customer service, those who need to arrange time to pay should contact HMRC as soon as possible.
Caroline Miskin, ICAEW Senior Technical Manager, Digital Taxation, said: “If you owe less than £30,000, you can set up a time to pay arrangement online, and you should do this before the deadline of 1 March to avoid the penalty.
“If you can’t arrange a payment plan online you should phone HMRC to make an arrangement.
“You will need to provide details of your current financial position, including income, expenses and savings, and know how much you can afford to pay each month. HMRC will require your bank account details so that a direct debit can be set up.
“While interest charges at 7.75% apply to any balance on a payment plan, getting the plan in place before 1 March will avoid a 5% late payment penalty on top of that.”
More information about setting up a payment plan can be found on HMRC’s website.
ENDS
Notes to editors:
CONTACT: ICAEW media office stephen.froome@icaew.com or 07970 402 073
- Those who can’t arrange a payment plan online should call HMRC on 0300 200 3820.