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Have You Paid Your January 2021 Tax Liability?

31 January 2021 marks the filing deadline for 2019/20 Self Assessment tax returns and is also the due date for any associated tax liabilities. In our previous article, we looked at assessing the actual amount payable and in this article, we will look at the process of managing those tax payments.

The amounts payable by 31 January 2021 include:

  • Any balancing tax payments toward 2019/20 liabilities. If you deferred your second payment on account for 2019/20 in July 2020, and have not paid this subsequently, this is also due for payment and should be considered when calculating any balancing payments due
  • If you are due to make payments on account towards your 2020/21 tax liability, the first of these payments is also due by 31 January 2021

If you do not meet these deadlines, HMRC will automatically charge a penalty of £100 for any late filed returns, with further penalties applied if a return is more than 3 months late. HMRC will also charge late payment interest on any liabilities not paid by the deadline, with further surcharges applied to balancing payments paid more than 30 days late.

However, if you are unable to pay your tax liabilities before the 31 January deadline, it may be possible to contact HMRC to request a Time to Pay arrangement. You can read more about this here.

It is also possible to appeal any penalties issued by HMRC if you have a ‘reasonable excuse’. HMRC may consider coronavirus as a reasonable excuse, however you must still make the return or payment as soon as you can. You can contact HMRC directly to discuss this.

If you would like to discuss your circumstances, our EQ Taxperts can offer advice or support with your tax payments. Please get in touch by calling one of our offices or emailing [email protected].


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