HMRC is waiving late self-assessment fines

This year, HMRC has said it wouldn’t penalise individuals for filing their self-assessments late. We explain what this means for you and the next steps if you’re due to file a self-assessment by 31st January 2021.

Usually, an automatic fine of £100 applies

In normal circumstances, HMRC issues automatic £100 late filing penalties to people who do not file their self-assessments by 31st January each year. However, with COVID-19 putting pressure on families and individuals, the tax office has decided to take a more lenient stance in 2021.

Taxpayers who need to file self-assessments are encouraged to do so on time. But if you cannot file your return by the deadline, HMRC will waive the £100 late filing penalty as long as you file online by 28^th February 2021.

HMRC’s Chief Executive, Jim Harra said: “We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they can’t pay it straight away.

But we recognise 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^st January.

Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.

We can reasonably assume most of these people will have a valid reason for late filing, caused by the pandemic.”

Please be aware you must still pay your tax bill by the 31^st January 2021 and interest will be charged on any outstanding liabilities from the 1^st February 2021.

Why not save yourself time (and stress) and enlist the help of our expert Personal Tax team to complete and file your tax return to HMRC on your behalf. Please complete the short form on our website or give us a call on 01707 671648 to get started.

Changes to 2021’s tax bill

We recently published information about changes to January 2021’s self-assessment tax bill including payment plan options if you are worried about paying your tax bill in one go. The Time to Pay arrangement allows payments deferred from July 2020 and those due in January 2021 to be spread over 12 smaller monthly instalments.

HMRC has also expanded their online service so you can set up a payment plan at any time, without the need to discuss it with HMRC first. If you would like to set up a Time to Pay arrangement you must file your 2019/20 tax return first and HMRC is encouraging taxpayers to do this as soon as possible to ensure they receive the support required.

Our dedicated Personal Tax team has completed over 25,000 returns

Our expert team will take care of everything for you from completing all the relevant forms and calculating your tax liability or refund, to submitting your self-assessment to HMRC. We will away the stress and worry of filing your tax return – leaving you free to focus on more important things!

To get in contact with our Personal Tax team, please complete the short form on our website, or call 01707 671648.