Tax administration

19 Oct 2021

Specific measures which were introduced to help businesses and individuals meet their compliance obligations during the COVID-19 pandemic, and which are still relevant, are set out below.

Appealing a tax decision or penalty

HMRC will allow taxpayers further time for appealing a decision or a penalty, or seeking a review of an HMRC decision, if they or their business has been affected by coronavirus.

If the decision or penalty notice was dated before 1 October 2021, HMRC will give you an extra 3 months after the deadline to appeal. Send your appeal as soon as you can, and explain the delay is because of COVID-19.

For more details see here and here.

Reasonable Excuse

HMRC may consider COVID-19 as a reasonable excuse for missing some tax obligations (such as payments or filing dates) provided the taxpayer managed to remedy the failure as soon as they were able to do so.

Explain how you were affected by COVID-19 in your appeal. You must still make the return or payment as soon as you can. For more details see here.

Time to Pay Arrangements

HMRC can agree time to pay arrangements with any businesses that cannot pay their tax on time because of COVID-19. They will agree these on a case-by-case basis and tailor them to meet individual circumstances.

There is a dedicated Coronavirus helpline for dealing with time to pay arrangements. If businesses need help or want to talk about their options, they can phone HMRC on 0800 024 1222. More information on this can be found on GOV.UK.

If you owe £30,000 or less then you might be able to set up a Time to Pay Arrangement online. This lets you pay your self-assessment tax bill in monthly instalments.