UK and International Tax news
HMRC Confirms No Late Filing Penalties For Those Who File By 28 February 2021
Wednesday 27th January 2021
HMRC has confirmed that Self Assessment taxpayers will not be charged penalties for filing their tax returns after the normal filing date of 31 January 2021 as long as they file by 28 February 2021.
Whilst more than 8.9m taxpayers have already filed their 2019/20 tax returns, HMRC is encouraging anyone who has not yet filed their tax return to do so by 31 January, if possible. Anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February.
Taxpayers are still obliged to pay their bill by 31 January and interest will be charged from 1 February on any outstanding liabilities.
Taxpayers who cannot afford to pay their tax bill on time can apply online to spread their bill over up to 12 months, but they will need to file their 2019/20 tax return before setting up a time to pay arrangement, so HMRC is encouraging everyone to do this as soon as possible.
According to HMRC, more than 42,000 taxpayers have already used the online service to manage their liabilities, totalling almost £130m. Taxpayers with bills over £30,000, or who need longer than 12 months to pay their bill, can contact HMRC to discuss Time to Pay arrangements.
Taxpayers required to make payments on account but know their bill is going to be lower than the previous tax year, for example due to loss of earnings because of COVID-19, can reduce their payments on account.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.