HMRC has announced that self-assessment tax payers will not receive a penalty for filing their 2019-20 tax return late, as long as they file online by late February.
Self assessment payers will not receive a penalty for their late online tax return if they file by 28 February, HMRC's Chief Executive Jim Harra announced on Monday (25 January).
More than 8.9m people have already filed their tax return, and HMRC is encouraging anyone who has not yet filed their tax return to do so by 31 January, if possible.
Mr Harra said: "We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they can’t pay it straight away.
"But we recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January.
"Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.
"We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic," he said.
Accountancy firm Saffery Champness is still encouraging farming and rural businesses who have not yet filed their return to do so by the original 31 January deadline.
Martyn Dobinson, partner at the firm, said tax payers can pay online, through their bank or by post before they file.
“It’s important to note that tax payers still need to pay their self-assessment tax bill by 31 January and interest will be charged from 1 February on any outstanding liabilities.
“Where the tax payer cannot afford to pay by 31 January, they may be able to set up an affordable plan and pay in monthly instalments.
"But they will need to file their 2019-20 tax return before setting up a ‘time to pay’ arrangement," he said.
