With just a week left to pay any outstanding tax liabilities for self-assessment, taxpayers must set up an online payment plan for the 2019-20 tax year if they do not want to pay the tax in full and avoid penalties.
Due to the impact of COVID-19, HM Revenue and Customs (HMRC) said last month that they were giving self-assessment taxpayers more time to pay their tax or set up a payment plan without facing a five per cent late payment penalty charge. These arrangements need to be in place by midnight on 1 April, however. 
To set up the online payment plan, Time to Pay, visit GOV.UK to spread the cost of the tax bill into monthly instalments until January 2022.
If you are worried about paying this outstanding tax or cannot set up the plan online, contact HMRC on 0300 200 3822, rather than incurring a fine.
Already, around 117,000 taxpayers have set up a self-serve Time to Pay arrangement online, totalling more than £437 million.
When completing the tax return, there is no change to the payment deadline. Other obligations are not affected.
The payment deadline remains 31 January 2021, and interest is charged on late payment, at a current rate of 2.6 per cent. 
However, a five per cent late payment penalty will apply if the tax remains outstanding and a payment plan has not been set up by 1 April 2021. 
For more information and advice on matters relating to self-assessment, please contact us.