HMRC to waive late self-assessment return penalty until end of February
Self assessment customers will not receive a penalty for their late online tax return if they file by 28 February, HM Revenue and Customs’ Chief Executive Jim Harra has announced.
More than 8.9 million customers have already filed their tax return.
HMRC is encouraging anyone who has not yet filed their tax return to do so by January 31, if possible.
Anyone who cannot file their return by the end of 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 January 31. Interest will be charged from February 1 on any outstanding liabilities.
Those 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 possible.
HMRC chief executive Jim Harra said: “We want to encourage as many people as possible to file their return on time so we can calculate their tax bill and help them if they can’t pay it straight away.
"But we recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by January 31.
“Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.
"We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
Normally, late filing penalties are applied to all returns filed after the January 31 deadline. Those penalties are cancelled if the customer has a reasonable excuse for filing late.
HMRC has increased support for customers who may need help with their tax liabilities due to the Covid pandemic.
Once they have completed their 2019-20 tax return, customers can set up an online payment plan to spread self assessment bills of up to £30,000 over up to 12 monthly instalments.
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Customers can apply for self-serve Time to Pay via GOV.UK. Interest will be applied to any outstanding balance from 1 February 2021.
Those with self assessment debts over £30,000, or who you need longer than 12 months to pay, may still be able to set up a Time to Pay arrangement by calling the Self Assessment Payment Helpline on 0300 200 3822