No Fine For Late Filing of your Self Assessment Tax Return

Today it was confirmed that there will be no fine for those self employed people failing to file their return by 31st January 2021. This is as long as it is filed by 28th February 2021.

The Chief Executive of HMRC, Jim Harra has 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 31 January.
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.”
HMRC will not be fining for late payments during February as a way to help taxpayers who are not able to meet the 31st January 2021 deadline. HMRC are monitoring it but are assuming any delay will be due to the Covid-19 pandemic. Again, there will be no fine issued for online tax returns sent before end of 28th February.
Self employed people will still have to pay their bill by 31st January 2021. Interest will be added from February 1st2021.
If paying the amount owed is an issue, taxpayers can opt to pay their tax bill over 12 months rather in one lump sum. However, the 2019/20 tax return will have to be filed in order to set this up. With this in mind, HMRC are encouraging people to file as soon as possible and then ask for help.
There is increased support for those needing it. For bills up to £30k, a payment plan can be set up so it can be paid over 12 monthly instalments. This is known as Time to Pay. Helping those out who need a helping hand right now. This can be done by the taxpayer themselves online here but if there are any issues HMRC can be contacted on 0300 200 3822 to discuss Time to Pay.
There is more information available on the Government website.

If you need more help than you can find yourself please contact us and we will do our very best to help you.