HMRC waives fines for late self-assessment filing

Still wrestling with your self-assessment tax return? Well, the good news is that fines will be waived for anyone who submits their self-assessment tax return up to a month after the usual deadline of January 31.

Accepting that the pandemic has put added pressure on both tax advisers and individuals to complete online submissions, 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 – including 2,828 filed on Christmas Day – which is just over half of the 12.2 million required to do so.

HMRC’s deputy chief executive, Angela MacDonald, 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, or 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.

Why not make it your New Year’s resolution to save yourself the hassle of filing self-assessment tax returns in future?

Let the knowledgeable and experienced SW&A team take the strain. Call us on 01905 622202 to start a conversation – then relax. 

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