Taxman gives self-assessment tax payers an additional month to file their 2020/21 tax returns. This extends the deadline for filing late penalties up until next month.
HM Revenue and Customs announced that Covid-19 was affecting some individuals’ ability to comply with their January 31 obligations. They also stated that no late filing penalties will be applied to anyone who fails January 31, provided that they submit their online return before February 28.
Self assessment tax-payers also have the option to set up a time to pay arrangement – a service which allows people or businesses to spread their tax payments over time.
Self assessment tax-payers with up to £30,000 of tax debt can do this online once they have filed their return.
HMRC claims that only half of the tax return due by the 31 January deadline has been submitted. HMRC stressed that everyone who is able to file by the 31 Jan deadline must do so.
HMRC extended for the second consecutive year the deadline to file late penalties in the Covid-19 pandemic.
Taxman gives self-assess tax-payers another month to file 2020/21 tax return. He also extends deadline for late filing penalties for tax returns until the next month. Stock pic
No late filing penalties will apply to anyone who does not file their tax return before January 31, provided that they do so online no later than February 28. The self-assessment tax payer has the opportunity to establish a time-to-pay arrangement. This allows individuals or businesses to spread out their tax payments (stock pic).
Nearly 6.5 million of the 12.2million taxpayers have already submitted their tax returns. The remaining 5.7 millions still have to complete their tax returns.
As usual, interest will be charged on all outstanding amounts starting February 1, so it’s better to pay promptly if you can, HMRC stated.
Angela MacDonald is HMRC’s second permanent secretary and deputy chief executive. She said that she knows the stresses businesses and individuals are facing due to Covid-19.
“Our decision to exempt self-assessment tax payers from penalties for one month will allow them more time to fulfill their obligations, without having to worry about getting a penalty.”
Lucy Frazer is the Treasury’s financial secretary. She said, “We recognize that Omicron has put people under stress, so we are giving millions more breathing room to manage their tax affairs.
“Waiving penalties for late filing or payment will ease our financial worries and help us navigate the coming months.
This tax return for 2020/21 covers both earnings and payments in the event of a pandemic. HMRC explained that taxpayers must report whether they were paid grants or other payments through the Covid-19 support scheme up until April 5, 2021. This self-assessment is taxable.
Nearly 6.5 million of the 12.2million taxpayers have already submitted their tax returns. There are still 5.7 million taxpayers who need to file returns. As usual, interest will be added to any outstanding amounts starting February 1, so it’s better to make your payments on time. (stock pic).
Beware of tax-related scams as they can become rampant in the weeks leading up to the deadline for self-assessment.
HMRC stated that the self-assessment returns should be filed online using the exact online address (www.gov.uk/hmrc).
These figures reveal that New Year’s Eve saw 33,467 and New Year’s Day saw 14,231 returns.
HMRC increased the deadline for self-assessment tax returns filing last year due to the pandemic. But the announcement came only six days after the original deadline.
The announcement for this year was made earlier than usual, giving tax payers more time to organize their taxes and look at time-pay options.