So Has the Self-Assessment Tax Deadline Been Extended?
Still there is no late filing penalty for self-assessment for those filing tax returns online before February 28th, in the UK. Self-assessment tax filers who are unable to file their tax return by January 31, 2021 will not receive a late filing penalty if they file online before February 28, 2021.
Jim Harra, CEO of HM Revenue and Customs (HMRC) has confirmed that Self-assessment customers will not be penalized for late online tax returns if they file them by February 28.
More than 8.9 million customers have already submitted their tax returns by now. HMRC encourages anyone who has not yet filed their tax return to do so by January 31st if possible. However, those who cannot submit by January 31st will not be penalized for late filing if they submit online before February 28th –a great incentive by HMRC. Taxpayers still have to pay their bill by January 31st. Unpaid liabilities will accrue interest from February 1st. Customers can pay online, through their bank, or by mail before applying. You can find more information about paying at GOV.UK.
Taxpayers unable to pay their tax bill on time can apply online to have their bill payment distributed over 12 months. However, you will need to file your 2019-2020 tax return before you can request a payment schedule. Therefore, HMRC urges everyone to do so as soon as possible. Due to the immense pressure of lockdown, many people are facing unprecedented times and it is becoming increasingly clear that some people will not be able to submit until January 31st. Most of these people have a valid reason to be late in applying because of the pandemic. If late filing penalties are not applied to online tax returns filed in February (which seems likely), they will have the necessary time to complete and submit their tax returns without fear of a fine.
Usually, late filing penalties are applied to all returns submitted after January 31st. However, these fines will be waived if the customer has a reasonable excuse for submitting their late tax returns. However, this year, the HMRC will not impose one-month late payment penalties to help taxpayers and agents who fail to meet the deadline. There is no late filing penalty for online tax returns received before February 28th.
More than 42,000 customers have already used the service without calling HMRC to manage their responsibilities for a total of nearly £ 130 million, by 25th January 2021. HMRC has increased support for taxpayers who may need help with their tax obligations. After completing their 2019-2020 income tax returns, customers will be able to set up an online payment plan to distribute self-assessment bills of up to £ 30,000 in up to 12 monthly instalments. From February 1, 2021, interest will be paid on all outstanding amounts.
Customers with bills over £ 30,000 or who need more than 12 months to pay their bill can call HMRC to discuss the payment deadline. Customers who have to pay a deposit and know that their bill is lower than last year, for example, due to lost revenue due to COVID-19, can reduce their deposit payments. Visit GOV.UK to learn more about down payments and how to reduce them.
If you need external assistance, in managing your late tax payments, Advantax Accountants has made a special desk for such clients. Contact us today and we will help you in paying your late taxes.