Self-Assessment Deadline extension!
Since our last update on the self-assessment deadline, HMRC has generously decided to extend the deadline by a further four weeks to allow taxpayers more time to get their returns finalized and submitted.
“We recognize 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”.
Subsequently, the filing deadline has now been extended to the 28th of February 2021.
Will I get a late filing penalty?
No! HMRC has guaranteed that anyone who cannot file their tax return by the 31st January will not receive a late filing penalty, providing that the return is instead received by the 28th February.
However, whilst the deadline has been extended, payment of any outstanding tax liabilities are still due by the 31st January 2021 so HMRC will charge interest on any outstanding liabilities from the 1st February 2021
What if I cannot pay?
If you cannot pay your Self-Assessment tax bill by the payment deadline of 31st January 2021 you may be able to pay this liability in monthly instalments instead.
If you meet the following criteria you can set up a payment plan online with HMRC to spread the costs of your latest Self-Assessment bill over a period of 12 months:
- You owe £30,000 or less
- You do not have any other payment plans or debts with HMRC
- Your tax returns are up to date
- It is less than 60 days after the payment deadline
As your tax returns must be up to date, your 2019/20 tax return must have been filed to HMRC before you try to set up a payment plan.
To set up a payment plan you will need a government gateway account. If you do not have an account set up, you can create an account online.
You can then choose how much you can afford to pay straight away and how much you want to pay each month. Please note you will have to pay interest.
“More than 42,000 customers have already used the service, without needing to call HMRC, to manage their liabilities, totaling almost £130 million”
If you would like some assistance in completing & submitting your self-assessment tax return then please get in touch – 01273 441 187