10.7 million taxpayers submitted their 2019/20 Self Assessment tax returns
The remaining 1.8 million taxpayers, whose tax return is now late, will not be charged a late filing penalty provided they submit their return online by 28th February.
Taxpayers who did not pay their self-assessment tax bill by 31st January are now incurring interest on the outstanding balance. They should pay their bill as soon as possible.
Taxpayers should pay any outstanding balance, or arrange a payment plan, before 3rd March 2021 to avoid a 5% late payment penalty.
The taxpayers who are not yet able to file their tax return should pay an estimated amount as soon as possible. Doing this will minimise any interest and late payment penalty.
Karl Khan, HMRC’s Interim Director General for Customer Services, said:
‘Thank you to the 10.7 million customers who have sent in their tax returns.
‘We won’t send anyone a late filing penalty if they complete their tax return by 28th February.
‘We know that many individuals and small businesses are finding it harder to pay this year, due to the pandemic. Anyone who can’t afford to pay their tax bill in full can set up a payment plan, once they’ve filed their return, to spread their tax bill into monthly instalments.’
There are several ways that taxpayers can pay their self-assessment tax bill or an estimated amount. They can pay online, via their bank, or by post.
Anyone who cannot pay their bill in full can apply to spread the cost. Taxpayers can set up a payment plan, in up to 12 monthly instalments, online via this link here provided they meet the following requirements:
Taxpayers need to have no outstanding tax returns, other tax debts or other HMRC payment plans set up. The debt needs to be between £32 and £30,000.
The payment plan needs to be set up no later than 60 days after the due date for payment. Taxpayers should set up the payment plan as soon as possible, and certainly before 3rd March to avoid a 5% late payment penalty.
Those who do not meet these requirements, or who need more than 12 months to pay their bill, can apply for a payment plan by speaking to one of HMRC’s debt advisers.
Interest accrues on all outstanding balances, including those in payment plans.
Self-assessment taxpayers who are required to make payments on account and know their 2020/21 tax bill is going to be lower than in 2019/20. For example, due to loss of earnings because of COVID-19, can reduce their payments on account. More information is available here
Danielle Harvey ACA, of Harvey, Telford & Bates, comments on the deadline:
“Following the latest announcements for taxpayers to settle their self-assessment tax returns, now is the time to ensure that you do not incur any penalties or interest. At Harvey, Telford & Bates we are on hand to help guide and provide you with advice to successfully file your self-assessment tax returns.”
If you would like assistance, please call us on 01743 462604 or email us at [email protected] to schedule an appointment or speak to one of our team.
To view the press release from the Gov.uk site, please click here
