No Penalty for self-assessment taxpayers

October 5, 2021

No Penalty for self-assessment taxpayers

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 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.

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