HMRC Update Guidance On Late Filing Penalties For 2019-20 Self Assessment Returns
On 25 January, less than a week before the 31 January tax deadline, HMRC announced that Self Assessment customers will not receive a late filing penalty for their 2020 tax returns, as long as they file online by 28 February.
HMRC hope that by not issuing late filing penalties for another month, it will help ease the burden for taxpayers who are unable to meet the deadline. However, they are still encouraging those that have not yet filed their return but are in a position where they can, to do so by the usual 31 January deadline.
Despite the change to the late filing penalties, you will still be required to pay your Self Assessment tax bill by 31 January, and interest will still be charged from 1 February on any outstanding liabilities. As discussed in our previous article, if you cannot afford to pay by 31 January, you may be able to set up monthly payment plan. Though, you will need to file your 2019-20 tax return before setting up a Time to Pay arrangement.
You can read more about paying in instalments here. If you know you will not be able to pay your bill, or file by the deadline, please contact HMRC to discuss your circumstances.
If you need assistance with your tax return, or any other tax related matter, please get in touch with our EQ Taxperts by calling one of our offices or emailing [email protected].