No Penalty for self-assessment taxpayers for their late online tax return if theyfile by 28 February, HMRC chief executive Jim Harra has announced
More than 8.9m customers have already filed their tax return. 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. 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
Normally, late filing penalties are applied to all returns filed after the 31 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 28 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, and the department has now determined that ensuring no taxpayer will receive
late filing penalties if they file online before the end of February is the best way to help
HMRC has increased support for taxpayers who may need help with their tax liabilities.
Once they have completed their 2019-20 tax return, they can set up an online payment
plan to spread Self-Assessment bills of up to £30,000 over up to 12 monthly instalments.
They can apply for self-serve Time to pay via gov.uk. Interest will be applied to any
outstanding balance from 1 February 2021.
Taxpayers who are required to make Payments on Account, and 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.
Contact the Team at Cangaf for further assistance.