No late filing penalty to be imposed on self-assessment customers who file online by 28 February!

Acknowledging the exceptional circumstances created by the pandemic, HMRC Chief Executive Jim Harra has announced that no late penalties will be imposed on self-assessment customers who file late online tax return provided they file by 28th February 2021.

However, HMRC is encouraging anyone who has not yet filed their tax return to do so by 31st January. And till date, more than 8.9 million customers have filed their tax return.

Please note that interest will be charged from 1st February on any outstanding liabilities while taxpayers are still obliged to pay their bill by 31st January.

How can customers pay tax?

Taxpayers can pay tax online, via their bank, or by post before they file.

You can find more information on how to pay at GOV.UK.

What happens to taxpayers who cannot afford to pay their tax bill on time?

Taxpayers who cannot afford to pay their tax bill can apply online and spread their bill over for up top 12 months.

However, they will need to file their 2019 to 2020 tax return before setting up a time to pay arrangement.

Where and how can customers discuss Time to Pay?

Customers who need longer than 12 months to pay their bills and have bills over £30,000 can discuss Time to Pay by calling HMRC at 0300 200 3822.

Can customers reduce their payments on account?

Customers who know that their bill is going to be lower than the previous tax year – due to loss of earnings during COVID-19 can reduce their payments on account.

To find out more about payments on account and how to reduce them, you can visit GOV.UK.

How can customers claim a contributory benefit?

Self-Assessment customers claiming a contributory benefit soon after 31st January 2021 should ensure that Class 2 National Insurance contributions payments (NICs) are paid.

This will ensure that the claims are unaffected.

Class 2 NICs may be affected in any of the two situations:

  • If customers could not pay all their 2019 to 2020 Self-Assessment liabilities by 31st January 2021.
  • If customers have entered a Time to Pay arrangement to pay off those liabilities through instalments.

How can customers contact HMRC?

Customers can contact HMRC via webchat, Twitter, or the Self-Ass
essment phone helpline.

They can also find the information needed on their Personal Tax Account or via the free HMRC app.

What are the opening timings for phone helpline and webchat service?

Both these services will be open on 30th and 31st January in addition to the weekday service.

Opening times for phone and card payment lines are:

Saturday: 30th January: 8 am to 6 pm and

Sunday:   31st January: 9 am to 6 pm

Opening times for webchat services are:

Saturday: 30th January: 8 am to 8 pm

Sunday:    31st January: 8 am to 8 pm

However, customers must have two sources of information to protect against identity fraud and will need to verify their identity before accessing HMRC’s online services.

They must have two sources of information that includes:

  • UK passport
  • P60/payslip
  • Tax credits
  • Credit Reference Agency Data

To find more information on Self-Assessment tax returns, click here.

Customers completing their Self-Assessment tax return can also benefit from available help and support.

Get in Touch

Just fill in your details here if you need help with filing self-assessment return or wish to discuss some other matters.

Lanop Accountants and Tax Advisers for Small and Medium Businesses

We are your local Chartered Accountants and Tax Advisers based in Putney, Harley Street and Battersea. We are expert XERO Accounting advisors and trusted business advisors in Wandsworth Borough.

While we are based in South West London and Central London, our clientele is quite global and our staff is currently working remotely to serve our clients through active Zoom accounts all over UK.

As always, you can reach out to us anytime to discuss any financial issues you may have in this coronavirus pandemic



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