HMRC successfully extends self-assessment deadline by a month

Thousands and thousands of individuals have been given monetary respiratory area after HM Income and Customs successfully prolonged the tax self-assessment deadline by a month, till 28 February.

HMRC is suspending late-payment penalties for self-assessment taxpayers till 1 April as a result of it “recognises the pressure” people and companies are going through due to Covid-19.

The transfer – a repeat of concessions made last year – is nice information for the estimated 5.7 million individuals who have nonetheless not filed their 2020-21 tax return. Virtually 6.5 million folks have already carried out so.

The official deadline for finishing a return is 31 January, after which a £100 late-filing penalty can be mechanically imposed. HMRC mentioned the deadline to file a return and pay any due tax was nonetheless 31 January, but it surely was waiving late-filing penalties for one month to provide extra time to taxpayers and accountants who could be struggling.

In consequence, those that file late won’t be hit with a penalty, offered their return is submitted by 28 February.

As well as, anybody who can not pay their self-assessment tax by the deadline won’t face a late-payment penalty, offered they pay in full or arrange a so-called “time to pay” association – which lets folks unfold their funds – by 1 April.

Usually a 5% late-payment penalty is charged on any unpaid tax that’s nonetheless excellent on 3 March. However HMRC mentioned curiosity can be payable from 1 February, as standard, “so it’s nonetheless higher to pay on time if doable”.

Daybreak Register, head of tax dispute decision on the accountant BDO, mentioned: “This can be a very welcome transfer by HMRC … This will probably be an enormous reduction to these going through tax payments alongside different family money owed in January.

“HMRC clearly understands that these severely impacted by Covid-19 shouldn’t face receiving a ‘brown envelope’ in February as it will lead to pointless angst.”

Kevin Sefton at tax app Untied mentioned: “The present Covid wave will probably be affecting not simply those that have to file, however accountants and others supporting the 51% of filers who use an adviser, and HMRC themselves.”