HMRC Waives Late Filing Penalties for Self Assessment
HMRC has announced that Self Assessment taxpayers will not receive a late filing penalty provided they file their tax return by 28 February. The normal deadline of 31 January still applies but taxpayers will not be charged the usual £100 late filing penalty if they submit online by the extended deadline.
Key point: Although the filing deadline has effectively been extended, any tax owed is still due by 31 January. Interest will be charged on any outstanding amounts from 1 February onwards.
What This Means for You
If you have not yet filed your Self Assessment tax return, you now have additional time to do so without facing a penalty. However, it is important to understand the following:
- The penalty waiver only applies to late filing, not late payment
- Interest on unpaid tax will still accrue from 1 February
- If you cannot pay your tax bill in full, you should set up a Time to Pay arrangement with HMRC
- The 5% late payment surcharge deadline has also been extended to 1 April
Setting Up a Payment Plan
If you are unable to pay your Self Assessment tax bill in full by 31 January, HMRC offers a Time to Pay arrangement that allows you to spread the cost over up to 12 monthly instalments. You can set this up online through your HMRC account if you owe £30,000 or less.