An announcement has been made by HM Revenue & Customs (HMRC) saying it will waive fines for self-assessment tax returns if the 31st January deadline is missed, as long as returns are submitted online by 28th February 2021.
If the deadline is not met it willstill result the automatic £100.00 penalty and taxpayers are still required to pay their tax bills by 31st January 2021.
HMRC has received more than 8.9 million tax returns from customers so far.
HMRC is encouraging customers to still meet the 31st January but understand some people could find this difficult with pressures they are facing in these unprecedented times.
HMRC suggests: “The decision to extend the filing date and waive the fees till February will give people breathing space and assuming people have a valid reason caused by the coronavirus pandemic.” It adds: “Taxpayers with liabilities up to £30,000 can apply to spread the cost over a period of up to 12 months, but will need to file their 2019-2020 tax return first”.
People with over £30,000 tax bill or need longer than 12 months to pay their bill are advised to call HMRC to negototiate payment schedules and terms.
Clearly, HMRC has recognised that many people, in particular the self employed and many owner/manager directors of small limited companies have missed out on profits or company dividends in 2020 amd will not have received the same financial support as the unemployed, those on benefits and employed/furlough staff. It is inevitable that if the choice is to feed your children, heat your home or pay taxes due, feeding children will take priority over keeping money back for taxes.