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On 25 January 2021, six days before the 31 January 2021 deadline, HMRC announced that if you are unable to meet this deadline, you will not receive a late filing penalty, as long as you file your 2019/20 tax return online by 28 February 2021. However, they encouraged people to still aim to meet this deadline, with interest still charged on any outstanding liabilities from 1 February 2021.
This is a further measure as part of the Coronavirus Support Schemes and HMRC have confirmed that around 1.8 million taxpayers didn’t meet the 31 January 2021 deadline.
HMRC expects more than 12.1 million people to complete a Self-Assessment tax return for the 2019/20 tax year, with more than 10.7 million meeting the 31 January 2021 deadline. However, provided they submit their tax return by 28 February 2021, you will not receive a late filing penalty.
They have also confirmed that:
- More than 30,000 people submitted their tax returns between Christmas Eve and Boxing Day;
- 22,200 of those were on Christmas Eve, a 10% increase on the previous year;
- 2,700 filing on Christmas Day itself, more than 10% decrease on the previous year; and
- 8,500 were completed on Boxing Day.
Struggling to pay your Tax Bill?
Especially for those who may have deferred their second Payment on Account which was due 31 July 2020, under the Coronavirus Support Schemes, you could find yourself with more tax to pay and less ability to be able to pay it, due to the current climate.
Therefore, if you are unable to pay your tax liability on time, you can apply to spread your bill over up to 12 months under a Time to Pay Arrangement. This can be done online if:
- You owe less than £30,000 (usually capped at £10,000);
- Have a Government Gateway account;
- You have filed your 2019/20 tax return; and
- Don’t have any other outstanding tax returns or owe any other money to HMRC.
If your liability is higher than £30,000, or you need longer than 12 months to pay, call HMRC on 0300 200 3822.
For some hints and tips for submitting your tax return, please check out our blog.
Lower your Payment on Account?
Remember, if you are under Payment on Account and your tax liability for 2020/21 will be lower than your liability for the previous year, you might want to consider an application to reduce your Payments on Account, which could help your cashflow.
However, only do this if you are sure you have suffered a loss of earnings (even after including any support under the Coronavirus Support Scheme) as HMRC can charge you interest and penalties where you do this incorrectly.
Black and White Accounting
Have you submitted your Self-Assessment Tax Return for 2020 yet? If not, and you are struggling to do it yourself, we’d be delighted to help you. Please get in touch with us today, by contacting Black and White Chartered Certified Accountants, populating the “Got a Question” form on the right, or calling us on 0800 140 4644. Our dedicated self-assessment accountants are ready to help.
