HMRC Announces Support For Self Assessment Taxpayers

On 6 January, HMRC announced that it will waive late filing and late payment penalties for one month for Self Assessment taxpayers.

While HMRC hope that many will submit their returns by usual 31 January deadline, the penalty waivers will support Self Assessment taxpayers that are under pressure to complete their 2020-21 tax return and pay any tax due.

The penalty waivers will mean that:

• anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February
• anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement by 1 April

However, it is important to note that interest will be payable from 1 February, at a rate of 2.75%, so it is still better to pay by 31 January if possible.

If you feel you need spread the cost of your tax payment, you may be able to set up monthly payment plan with a Time to Pay arrangement or a Self Assessment payment plan.

You can set up a Self Assessment payment plan within 60 days of the payment deadline to pay your tax bill in instalments, over a period of up to 12 months, without contacting HMRC.

To be eligible to set up an online payment plan you need to:

• have filed your 2019-20 tax return
• owe £30,000 or less
• have no other tax debts
• have no other HMRC payment plans set up

If you need assistance with your tax return, or any other tax related matter, please get in touch with our Taxperts by calling one of our offices or emailing [email protected].