HMRC announces one month late filing reprieve
The standard deadline for individuals filing a tax return is 31 January. Failure to meet this deadline usually means a £100 automatic penalty applies, even if no tax is owed. Why will an HMRC announcement bring relief to those struggling due to the pandemic?
HMRC has acknowledged the ongoing pressure on taxpayers arising from the coronavirus pandemic and the knock-on effect it is having on self-assessment filing. It is estimated that over 5 million tax returns are due to be filed this month ahead of the 31 January deadline. To ease the pressure, HMRC has announced that no automatic penalty for a late return will be issued as long as the filing is made by 28 February. Additionally, no late payment penalty will apply if payment is made in full by 1 April (or the taxpayer agrees a payment plan before that date).
Care is needed where the taxpayer is self-employed - especially if 2020/21 is the first year of trading. Class 2 NI is collected via self-assessment but administered by a separate department. Late payment of the modest liability can put entitlement to certain welfare payments at risk. Taxpayers should contact HMRC to make a separate payment to avoid problems.
Related Topics
-
HMRC checks directors’ loans are paid up
HMRC is writing to agents to check corporation tax returns for previous years are correct as it used to be possible to add a future date for an anticipated loan repayment. What’s the issue and what should you do if your advisor receives a letter?
-
Working from home tax relief scrapped in Budget
Employees who are required to work from home are currently able to claim tax relief at a flat rate of £6 per week. That's changing from 6 April 2026. What's the full story?
-
Government quietly confirms change to key tax deduction
The headlines for individuals at last week's Budget were all about the income tax hikes. But the small print contained confirmation of another important change. What’s the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.