A MULTI-AWARD winning accountancy firm has celebrated the decision by HMRC to waive self-Assessment late payment penalties.

The tax authority has announced that that it is waiving the five per cent late payment penalty that usually applies from 3 March for taxpayers who pay or set up a payment plan by 1 April 2021.

Under this latest support measure, self-assessment taxpayers who are unable to pay all the tax that they owe can create a self-serve Time to Pay arrangement online, as long as their debt is £30,000 or less.

Award winning firm Lamont Pridmore which owns bases in Penrith and Keswick has called the move a lifeline for businesses who are struggling with financial hardship during the Covid-19 pandemic.

Speaking about the latest financial support from the Government, Graham said: “It is great that taxpayers are being given the support they need during these difficult times.

“We are encouraging people in Cumbria and beyond to take action now on this offer if they are struggling to pay the taxes they owe.

“By paying in instalments, it should relieve the financial pressure at a time when many incomes have been adversely affected.

Graham said: “Many people have deferred tax payments from previous periods in 2020, which is why the tax owed by many individuals is even greater this year.”

However, Graham added that while penalties may have been waived, for now, interest would continue to accrue on outstanding Self-Assessment tax payments, which is why taxpayers must try to pay the tax due as soon as possible using the new arrangements available.

Wilf Pridmore, a Partner based at Lamont Pridmore’s Keswick office, added: “The waiving of fines on tax late payment comes after similar moves for the late filing of tax returns last month, which gave taxpayers longer to complete the Self-Assessment process.

“While this was useful, taxpayers need to make sure that they file their online Self-Assessment tax return before 28 February to avoid an automatic £100 penalty.”

Cumbrians who are struggling with their current tax return or need assistance with the tax that they owe are being advised to seek professional help.

If you require assistance from Lamont Pridmore’s experienced team of accountants, tax and business advisers, visit www.lamontpridmore.co.uk. or call 0800 234 6978

The company is also offering assistance with the logistics of post-Brexit training at the minute. Advice for businesses on post-Brexit trading is also available on the Lamont Pridmore website.