HMRC U-turn on Self-Assessment late filing penalties

25.01.2021
Shaun Davison
Tax, News

Thousands of Self-Assessment taxpayers are to benefit from HM Revenue & Customs (HMRC) announcement to postpone tax return late filing penalties until 28 February 2021.

Until now, HMRC have refused to concede on postponing the 31 January 2021 tax return filing deadline, despite concerns from taxpayers and pressure from professional bodies.

Today HMRC announced that Self-Assessment taxpayers who file their 2019/20 tax return late will not receive a late filing penalty, provided they file the return online by 28 February 2021.

HMRC are still encouraging taxpayers who have not yet filed their returns to do so by 31 January 2021 if possible, as this will enable them to calculate their tax bill and assist setting up a payment plan if required.

Taxpayers are still obliged to pay their tax bill by 31 January 2021 and interest will be charged from 1 February on any outstanding liabilities.

By not charging late filing penalties for late online tax returns submitted in February, Self-Assessment taxpayers will be given the breathing space they need to complete and file their returns, without worrying about receiving a penalty.

To speak to a member of our team

Wide-ranging tax planning and compliance services for individuals seeking advice and guidance from our team of experienced and highly qualified professionals.

Friendly and coherent advice and guidance on accounting and tax matters for small business owners including those starting out for the first time.

Established businesses requiring accounting and tax compliance services, forward thinking tax planning advice and the support to help your business succeed.

Our full range of enhanced corporate services aimed at large companies and those requiring audit, assurance, corporate tax advisory and diverse tax planning services.

Glossary

Test

This is a test definition

more