HMRC has waived late filing and late payment penalties for self-assessment taxpayers by one month, effectively moving the tax return deadline from 31 January to 28 February.
The extension means that taxpayers who cannot file their return by the end of January will not be issued an automatic penalty, as long as they file the return by 28 February. Similarly, taxpayers who cannot pay their tax liability by 31 January will not receive a late payment penalty if they pay in full (or set up a ‘time to pay’ arrangement) by 1 April. However, interest will be charged from 1 February as usual.
HMRC are still strongly encouraging taxpayers to file by 31 January, despite the waiving of penalties for a month. Tax returns received in February will still be treated as ‘late’ in other ways such as an extended enquiry window.
Recent figures show that 6.5m taxpayers have submitted their return, with 12.2m still to do so.
The deferral of penalties has been introduced by HMRC due to the impact on taxpayers of Covid.
If you have any queries in relation to personal tax matters, please call the team at Ellis & Co Chartered Accountants in Chester on 01244 343504.