Still wrestling with your self-assessment tax return? Wondering ‘Do HMRC fine for late filings? The good news is that fines will be waived! Submit your self-assessment tax return by the end of February, instead of the usual deadline of January 31 and guess what ? No fine!
The pandemic has put added pressure on both tax advisers and individuals to complete online submissions. Therefore, HMRC has said that fines would not be enforced for anyone who files by February. Typically, not meeting the deadline results in an automatic £100 penalty.
The tax agency said 6.5 million customers had already filed their tax returns for the 2020-21 financial year. This includes 2,828 filed on Christmas Day – which is just over half of the 12.2 million required to do so.
Angela MacDonald, HMRC’s deputy chief executive, said: “We know the pressures individuals and businesses are again facing this year, due to the impact of Covid-19. Our decision to waive penalties for one month for self-assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.”
This is the second year in succession that such a decision has been taken on fines. Anyone unable to pay their self-assessment tax by January 31 will not receive a late payment penalty if they pay their tax in full. Likewise, the option to set up a time to pay arrangement, which spreads the cost over time, by April 1. Interest will still accrue on any unpaid tax from February 1.
Do you like New Year’s resolutions? Start by saving yourself the hassle of filing self-assessment tax returns! In future, why not get in touch with us and let our knowledgeable and experienced team take the strain. Contact us on 01905 622202 to start a conversation – then relax.