Self Assessment late filing penalties to be waived if return filed by 28th February 2021
HMRC have today announced they will not impose £100 penalties for anyone missing the 31st January 2021 Self Assessment deadline, provided they file before 28th February. The move is hoped to give much needed breathing space for many taxpayers struggling to balance the increased time pressure owing to the current lockdown.
However taxpayers are still urged to file their Self Assessment returns as soon as possible and payment still remains due by 31st January (after which it will start to incur interest). To pay your tax bill you can find the Pay Self Assessment section on HMRC's website, and it will give you the various payment options. You will need to use your UTR (Unique Tax Reference) with the letter K at the end (eg 1234567891K) when making your payment.
HMRC have also promoted their service for taxpayers to spread the cost of their tax bills over several months if they are struggling to pay by the deadline, using their online payment service for tax bills under £30,000 (for liabilities over £30,000 you are asked to call them), or alternatively calling them on the coronavirus payment support line.
Details can be found here https://www.gov.uk/difficulties-paying-hmrc
If you have already approved your return and paid your tax bill, no further action is needed.
If you have approved your return but are yet to pay, please refer to the payment notes above
If your records are with us, they are being worked on - please note you will be hearing from us shortly. We are sending out draft returns for signature throughout each day this week so keep an eye on your inbox.
We are asking clients who have not already sent in their records to endeavour to do so at the earliest opportunity this week. Although to reiterate HMRC are not going to issue their £100 penalty if the return is submitted after 31st January. Despite the extension, we are still aiming to get 100% of our clients returns submitted by the 31st January in order to give you enough time to make the necessary payment arrangements with HMRC.
January is usually our busiest time of year, and with the Lockdown this year and our ongoing commitment to supporting clients with ongoing advice and support with the various COVID reliefs, this January is proving to be especially busy. As such we are experiencing higher than average call and email volume and so your patience is appreciated. However if you leave your details or an email, we will always respond as quickly as possible.
Please contact us if you have any concerns or questions about your personal tax return.