HMRC has announced that self-assessment customers who are unable to file their tax returns by 31 January will no longer receive a late filing penalty, providing they file online by 28 February.
HMRC expects more than 12.1 million people to complete a Self-Assessment tax return for the 2019 to 2020 tax year. As of 25 January, 8.9 million have already filed their tax return.
Although the deadline has been extended, tax liabilities are still payable by 31 January and interest will be charged from 1 February on any outstanding liabilities.
Taxpayers struggling to pay on time
HMRC is encouraging everyone who has not filed their tax return to do so by the end of January. They have, however, acknowledged that “unprecedented times” mean some people will not be able to file their returns by the deadline.
These people will no longer be issued a late filing penalty for online tax returns received by 28 February.
HMRC offers ‘breathing space’
By not charging late filing penalties for late online tax returns submitted before the end of February, HMRC says they are offering people “the breathing space they need to complete and file their tax returns, without worrying about receiving a penalty.”
HMRC are also offering additional support with tax liabilities for customers who have completed their 2019 to 2020 tax returns. Time To Pay (TTP) allows businesses to make arrangements with HMRC for tax payments to be spread over a longer period of time than they would otherwise be due.
People with self-assessment bills up to £30,000 may set up an online payment plan to spread their payments over up to 12 monthly instalments.
Contact SHORTS for professional guidance
If you are a self-assessment customer and have any queries, concerns or are experiencing any difficulties with this year’s returns, our dedicated tax team at SHORTS is happy to help.