Self-Assessment penalties waived for returns filed by 28 February – but payment deadline remains
HM Revenue & Customs (HMRC) has announced that any Self-Assessment taxpayers who miss the 31 January 2021 tax return deadline will not receive late filing penalties if they file online by 28 February 2021.
Crucially, this is not a deadline extension and we recommend submitting by 31 January 2021. Time limits for any claims or elections you need to make on your tax return will not be extended. The cost of failing to make these claims or elections on time could significantly outweigh any savings from the waiving of late filing penalties.
Taxpayers who do not pay any outstanding balance on their 2019-20 tax bill by 31 January 2021 will be charged interest from 1 February 2021.
HMRC has also said that Self-Assessment taxpayers who may need to claim contributory benefits should ensure they pay their Class 2 National Insurance Contributions (NICs) by 31 January 2021 to ensure their claims are unaffected. Contributory benefits include the State Pension, Job Seekers Allowance, Employment Support Allowance or Bereavement Support Payment.
Anyone who cannot afford to pay their Self-Assessment tax bill of up to £30,000 for 2019-20 can apply online for a 12-month payment plan, although this is subject to interest. Meanwhile, anyone with a larger tax bill that they cannot pay or who needs longer to pay should contact seek advice or contact HMRC to discuss a repayment plan.
Please contact us today if you need Self-Assessment advice.