Farmers and rural businesses have been advised to stick to the 31 January 2021 self-assessment filing and payment deadlines 'unless absolutely unavoidable'.
The message from Saffery Champness is that, with the deadline now looming, those who would normally file their self-assessment tax returns and pay their tax by that date should do so.
Those who deferred their July 2020 tax payments on account under Covid concessions introduced in 2020 should ensure that those deferred payments are also made, unless they have agreed a “time to pay” plan with HMRC.
Martyn Dobinson, partner at chartered accountants Saffery Champness, said there had been reports that filing deadlines were being relaxed due to the pandemic.
"There has been no formal deadline extension, although HMRC has said that where there is a reasonable excuse for failure to file on time, for Covid-related reasons, then taxpayers may be able to appeal any penalty.
"Penalty appeals will be considered on a case-by-case basis and no further guidance has been given as to what will constitute a reasonable excuse.
"The statutory late filing penalty is an initial £100, but that will increase over time."
Saffery Champness has also advised farmers and rural firms that self-assessment taxpayers may be able to spread the cost of their 31 January 2021 tax liability over 12 monthly payments.
The scheme, announced in October 2020, is accessed through an online self-service “time to pay” plan provided by HMRC.
However, that service is only available to those who have experienced financial difficulties as a direct result of the coronavirus pandemic and where tax liabilities are no greater than £30,000.
Other conditions apply, such as taxpayers must have no other outstanding tax debt or outstanding tax returns, and interest is charged at 2.6% from the normal due date until the account is settled in full.
Specific agreement will need to be obtained from HMRC where the liability is greater than £30,000, or where more than 12 months may be needed to settle tax due.
Mr Dobinson said: “Our advice is that taxpayers should do what they can to meet these deadlines for payment and reporting or make alternative arrangements with HMRC in advance.
"A further penalty could be ineligibility for future government support during the pandemic. Where difficulties are anticipated, you should speak to your professional advisor as soon as possible.”
