Update On Self Assessment Tax Returns: HMRC To Waive Late Filing Penalties For One Month

1. Update On Self Assessment Tax Returns: HMRC To Waive Late Filing Penalties For One Month The deadline for completing an online self-assessment tax return for the 2019/20 tax year is this Sunday. However HMRC has announced self assessment taxpayers struggling to meet the filing deadline on time will not receive a penalty for their late online tax return due on 31 January 2021, if they file online by 28 February. This one-month waiver does not change the need to pay any tax due by 31 January. Interest will be charged from 1 February on any outstanding liabilities and a late payment penalty of 5% will also apply if by 2 March the tax isn’t paid, or there isn’t a time-to-pay agreement in place. For more information on TTP agreements, and setting up an online payment plan to spread self assessment bills, please visit our other blog here.

2. HMRC’s Chief Executive, Jim Harrasaid: “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 cannot pay it straight away.” “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 January 31.” “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 is still encouraging any taxpayer who has not yet filed their tax return to do so by the original January deadline if possible. If you’d like any questions answered by our expert tax team about your self assessment return, please don’t hesitate to get in touch with TS Partners. For more information visit here: https://www.tspartners.co.uk/