Penalties waived for tax returns filed before 28 February

Penalties will not be issued to taxpayers unable to meet the 31 January self-assessment filing deadline, if they file by 28 February 2021.

Regardless of this latest announcement, those who can meet the 31 January deadline are encouraged to do so.

Outstanding liabilities must be settled by 31 January. Taxpayers who do not pay their 2019-20 tax bill, by this date, will be charged interest from 1 February 2021.

Those unable to settle Self-Assessment liabilities of up to £30,000, for 2019-20, can apply online for a 12-month payment plan. However, it is worth noting that the payment plan will be subject to interest.

If your tax bill exceeds £30,000 or you need longer to pay, seek advice or contact HMRC.

HMRC has also said that Self-Assessment taxpayers who may need to claim contributory benefits should ensure they pay their Class 2 National Insurance Contributions (NICs) by 31 January 2021. This will ensure their claims are unaffected.

Contributory benefits include the State Pension, Job Seekers Allowance, Employment Support Allowance or Bereavement Support Payment.

How can George Hay help?

Filing your self-assessment tax return in a timely manner has always been important. However, after 12 months of struggle and uncertainty, it has taken on a renewed importance this year, as it could give you the financial breathing space that you need.

Whilst HMRC has given those who are unable to meet the 31 January deadline some breathing space, by waiving penalties for a month, we would still urge you to file on time if you have the ability to do so.

Contact us today, to discuss your circumstances with one of our professional tax advisers.

You can read more about HMRC’s decision in the press release, here.

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