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Self Assessment Filing Extension

HMRC have today announced a Self Assessment filing extension. Self Assessment customers will not receive a penalty for their late online tax return if they file by 28th February.

More than 8.9 million customers have already filed their tax return. HMRC is encouraging anyone who has not yet filed their tax return to do so by 31st January.

Anyone who cannot file their return by the 31st January deadline will not receive a late filing penalty. Providing they file online by 28th February. Taxpayers are still obliged to pay their bill by 31st January. Interest will be charged from 1st February on any outstanding liabilities. Customers can pay online, via their bank, or by post before they file.

If You Cannot Afford To Pay

Taxpayers who cannot afford to pay their tax bill on time can apply online to spread their bill over up to 12 months. But will need to file their 2019-20 tax return before setting up a time to pay arrangement.

We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they can’t pay it straight away. But we recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January. “Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty. We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.

HMRC’s Chief Executive, Jim Harra

Normal Years Deadlines

Normally, late filing penalties are applied to all returns filed after the 31st January deadline. Those penalties are cancelled if the customer has a reasonable excuse for filing late. However, this year HMRC is not issuing late filing penalties for a month to help taxpayers and agents who are unable to meet the deadline. Late filing penalties will not be issued for online tax returns received by 28th February.

HMRC has previously said that it was keeping the situation closely under review. It has become increasingly clear from the filing rate that some taxpayers and agents cannot file on time. The department has now determined that ensuring no customer will receive late filing penalties if they file online before the end of February is the best way to help them. HMRC has increased support for customers who may need help with their tax liabilities. Once they have completed their 2019-20 tax return, customers can set up an online payment plan to spread Self Assessment bills of up to £30,000 over up to 12 monthly installments.

Interest will be applied to any outstanding balance from 1st February 2021.

For further advice on Self Assessment contact AJR & Co Ltd