HMRC announces one month late filing reprieve
The standard deadline for individuals filing a tax return is 31 January. Failure to meet this deadline usually means a £100 automatic penalty applies, even if no tax is owed. Why will an HMRC announcement bring relief to those struggling due to the pandemic?
HMRC has acknowledged the ongoing pressure on taxpayers arising from the coronavirus pandemic and the knock-on effect it is having on self-assessment filing. It is estimated that over 5 million tax returns are due to be filed this month ahead of the 31 January deadline. To ease the pressure, HMRC has announced that no automatic penalty for a late return will be issued as long as the filing is made by 28 February. Additionally, no late payment penalty will apply if payment is made in full by 1 April (or the taxpayer agrees a payment plan before that date).
Care is needed where the taxpayer is self-employed - especially if 2020/21 is the first year of trading. Class 2 NI is collected via self-assessment but administered by a separate department. Late payment of the modest liability can put entitlement to certain welfare payments at risk. Taxpayers should contact HMRC to make a separate payment to avoid problems.
Related Topics
-
VAT reduced on advance payment if customer cancels?
A subscriber to our newsletter wrote to us with a query. The business supplies a three-stage training course to students that fully pay (non-refundable) in advance for all three stages. If the students drop out before the end, can our subscriber partly reduce the VAT paid to HMRC on their return?
-
HMRC scrutinising directors’ loans
HMRC has begun a new compliance campaign targeting company directors who owed their companies money. What’s the full story, and how should you respond?
-
New two-tier mileage rates for electric vehicles
The amount that employers can reimburse staff for business travel in company cars changes from 1 September 2025. What are the new rates, and why is this update different to previous ones?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.