HMRC waives self assessment penalties for a month

26 Jan 2021

Self assessment taxpayers will not be fined for late online returns if they file by 28 February, HMRC has said.

More than 8.9 million taxpayers have already filed their tax return. HMRC is encouraging anyone who has not yet filed their tax return to do so by 31 January, if possible.

But 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. Taxpayers are still obliged to pay their bill by 31 January. Interest will be charged from 1 February in regard to any outstanding liabilities.

Taxpayers who cannot afford to pay their tax bill on time can apply online to spread their payments, 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.

Derek Cribb, CEO of the Association of Independent Professionals and the Self-Employed (IPSE), said: 'We are pleased that HMRC has heeded our calls to show some leniency as 2020 was a financially devastating year for the self-employed.

'While this is a helpful intervention, we believe HMRC could go further to relieve some of the financial stress on the self-employed. In particular, we would urge government to do the decent thing and drop the late payment penalties on tax owed as well, to allow freelancers to pay this back in instalments without the threat of fines.'

icaew logo acca logo sage logo sageone logo bas xero

Home | Contact us | Accessibility | Disclaimer | Help | Site map | © 2021 Madisons. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Madisons is a trading name of Madison Business Services Limited Registered office: Bushbury House, 435 Wilmslow Road, Withington, Manchester, M20 4AF. Company Number: 03800186, VAT Registration Number: 741 1182 67 Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our Audit Registration can be viewed at www.auditregister.org.uk and www.cro.ie/auditors for Ireland under reference number C009016107.
Telephone: 0161 434 3535 | Fax: 0161 445 0430 | Email: enquiries@madisons.co.uk.

Address
Madisons, Bushbury House, 435 Wilmslow Road, Withington, Manchester, Lancashire M20 4AF