HM Revenue & Customs (HMRC) has confirmed that it will not charge the usual daily penalties for late filing of 2018-19 Self-Assessment tax returns, which were due by 31 January 2020.
HMRC says the move is in response to the Coronavirus pandemic and the challenging circumstances taxpayers have faced in recent months.
The daily penalties are usually levied where returns are more than three months late and for a maximum of 90 days; at £10 a day, this can total £900.
After this point, late filers face a penalty of the greater of £300 or five per cent of the outstanding tax owed, which is levied again if a return is a year or more late.
It’s important to bear in mind, however, that whilst HMRC has waived the daily charges, the six and 12-month penalties remain in place.
Carol George, Tax Manager, says: “Whilst HMRCs commitment to waive late filing fees for 2018-19 Self-Assessment tax returns is good news for taxpayers who have been adversely affected by the pandemic, it is still advisable to file on time wherever possible.
“Subsequently, it seems like a good time to remind taxpayers of the upcoming 31 January 2021 deadline to file online Self-Assessment tax returns for 2019-20 tax year, despite the Government having given taxpayers the option to settle their liabilities over a longer period, up to 31 January 2022.
“Do not make the mistake of being complacent, just because more time has been granted in respect of paying your 2019-20 tax bill.
“With all that has gone on this year, filing your tax 2019-20 tax return as soon as possible could really help you to plan proactively for the months ahead and, as always, will mean one less thing to concern yourself with during the Christmas period.”
How can George Hay help?
At George Hay Chartered Accountants, our team of trusted tax advisers will assist you with fulfilling your self-assessment tax return obligations, whilst saving you time and money, helping you to grow your business and eliminating worry in the process.
Why risk falling victim to penalties, panic and poor guidance when you can rely on us to take care of your tax affairs quickly, efficiently and compliantly.
If you’d like to meet with one of our advisers to discuss your circumstances in more detail, contact us today.