Tax return deadline extension and payment plan
Tax return Deadline extension
HMRC has announced that Self Assessment customers will not receive a penalty for filing their 2019-20 tax return late, as long as they file online by 28 February 2021. HMRC are still encouraging customers who have not yet filed to do so by 31 January, if possible.
Tax return payment
Customers still need to pay their Self Assessment tax bill by 31 January. Interest will be charged from 1 February on any outstanding liabilities. Customers can pay online, or through their bank, or by post before they file.
Tax return payment plan
If any customer cannot afford to pay by 31 January, they may be able to set up an affordable plan and pay in monthly instalments. But they will need to file their 2019-20 tax return before setting up a time to pay arrangement.
HMRC chief executive Jim Harra has announced that Self assessment taxpayers will not receive a penalty for their late online tax return 2019/20, if they file by 28 February 2021.
More than 9 million taxpayers have already filed their 2019/20 tax return. HMRC is encouraging anyone who has not yet filed their tax return to do so by 31 January, if possible.
Anyone who cannot file their 2019/20 return by the original deadline of 31 January 2021 will not receive a late filing penalty if they file online by 28 February 2021.
Taxpayers are still obliged to pay their bill by 31 January 2021 though. Interest will be charged from 1 February 2021 on any outstanding liabilities. Click here to find out how to pay our self-assessment tax bill.
Taxpayers who cannot afford to pay their tax bill on time can apply online to spread their bill over up to 12 months. But they will need to file their 2019-20 tax return before setting up a time to pay arrangement, so HMRC is encouraging everyone to do this as soon as possible.
HMRC chief executive Jim Harra said:
‘We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they cannot pay it straight away.
But we recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January. ‘Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty. We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
Late filing penalties are normally applied to all tax returns submitted after the 31 January deadline. However, those penalties are cancelled if the customer has a reasonable excuse for filing late. However, this year HMRC is not issuing late filing penalties for a month to help taxpayers and agents who are unable to meet the deadline. Late filing penalties will not be issued for online tax returns received by 28 February.
HMRC has previously said that it was keeping the situation closely under review. It has become increasingly clear from the filing rate that some taxpayers and agents cannot file on time, and the department has now determined that ensuring no taxpayer will receive late filing penalties if they file online before the end of February is the best way to help them.
HMRC has increased support for taxpayers who may need help with their tax liabilities. Once they have completed their 2019-20 tax return, they can set up an online payment plan to spread Self Assessment bills of up to £30,000 over up to 12 monthly instalments. They can apply for self-serve Time to Pay via gov.uk. Interest will be applied to any outstanding balance from 1 February 2021.
More than 42,000 taxpayers have already used the service, without needing to call HMRC, to manage their liabilities amounting to almost £130m.
Taxpayers with bills over £30,000, or who need longer than 12 months to pay their bill, can call HMRC on 0300 200 3822 to discuss time to pay.
Taxpayers who are required to make Payments on Account, and know their bill is going to be lower than the previous tax year, for example due to loss of earnings because of Covid-19, can reduce their Payments on Account. Visit GOV.UK to find out more about Payments on Account and how to reduce them.
Anyone trying to contact HMRC in the run up to the deadline can do so via webchat, Twitter or the Self Assessment phone helpline. They may also find the information they need via the free HMRC app or their Personal Tax Account.
Helpline and webchat
The phone helpline and webchat will both be open on 30 and 31 January, in addition to the weekday service. Opening times are below:
Telephony and card payment lines: Saturday 30 January: 08:00 to 18:00 and Sunday 31 January: 09:00 to 18:00
Webchat: Saturday 30 January and Sunday 31 January: 08:00 to 20:00
To protect against identity fraud customers must verify their identity when accessing HMRC’s online services. They must have two sources of information including:
- credit reference agency data;
- tax credits;
- P60/payslip; or
- UK passport
Our service to you
If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.
Get further information from the following pages;
How to pay self assessment bill
If you can’t pay your tax bill on time