At a traditionally difficult time of the tax year while enduring a more difficult year from the pandemic, HM Revenue and Customs (HMRC) have thrown a lifeline to taxpayers with the decision to waive penalties for Self-Assesment tax filing. This would typically be a late filing penalty fee of £100. 

Normally, Self Assessment needs to be filed by 31st January. HMRC this year, will allow Self Assessments to be filed up to 23:59 on 28th February 2021 without incurring a late penalty fee. However, this doesn’t seem to apply to the tax bill itself and taxpayers are still required to pay their tax bill by 31st January 2021.

HMRC’s decision to waive Self-Assessment late filing penalties is aiming to alleviate some pressure off some companies that may need some extra breathing room to get things in order after suffering a difficult year with the pandemic. 

Taxpayers finding it difficult to pay their tax liabilities are also able to spread payments (up to £30k) in a payment plan over 12 months. This can only be done after filing a tax return. Liabilities greater than £30k are encouraged to call HMRC directly for help. 

Many people have greater tax bills to pay having taken opportunities previously to defer their tax bills. But this is putting greater pressure on them to pay their self-assessment tax. Instalments could help thousands of people manage their finances to cover their tax. 

Debts unpaid by the January deadline will still be vulnerable to interest rates of 2.9% on any unpaid tax from 1st February. 

If you need any advice or assistance with self-assessment or other tax matters, get in touch, we’re ready to help.