Taxpayers warned self-assessment deadline remains despite pandemic

Despite calls for either an extension on the self-assessment deadline or for HMRC not to charge the automatic £100 late penalty fee, all tax returns must be completed and paid by 31^st January 2021.

The Low Incomes Tax Reform Group (LITRG) is urging people to complete their 2019/20 self-assessment tax return online by the usual deadline of 31^st January or risk a fine from HMRC.

HMRC say they will accept pandemic-related disruption as grounds to appeal the penalty if that is the reason for the late filing – taxpayers must appeal within three months of the penalty charge.

It’s worth noting that taxpayers may also have to pay their first payment on account for 2020/21 on 31^st January 2021. Those unable to settle these amounts in one payment can make a time-to-pay arrangement with HMRC to spread them across a longer period, but they must first submit their tax return.

Victoria Todd, Head of LITRG Team, said, “Despite the continuing disruption to our daily lives caused by the coronavirus pandemic, it is vital that people understand the 31^st January Self-Assessment deadline remains and act without delay.

“We know that people may be facing financial difficulties because of the pandemic. If you think you might find it difficult to pay your tax bill, you must still try and submit your tax return so that you know how much tax you are due to pay. You may qualify for HMRC’s expanded online service, which allows you to pay your tax bill in instalments over a maximum of 12 months. If you do not qualify for this or need longer to pay, you should get in touch with HMRC as soon as possible.

“You may have started your tax return but are stuck with the tax treatment of a particular expense, unsure if parts are correct or even if you still need to file a tax return. There is guidance available from organisations such as LITRG and HMRC. If you are unable to finalise your return because you cannot obtain certain information, such as a figure for bank interest, consider filing a return with estimated or provisional figures to avoid a late-filing penalty being charged.

“Double-check that you have correctly submitted your return online once you have fully completed it. You may complete your tax return and print off a draft return and tax calculation but not realise that you also need to submit the return as the last step of the online process. You should get a submission receipt from HMRC once the process is completed if you have used HMRC’s online filing system correctly.”

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