The HM Revenue and Customs' Chief Executive Jim Harra has announced the waiving of penalty for late online returns if taxes are filed by February 28. According to the announcement, taxpayers who cannot afford to pay their tax bill on time can apply online to spread their bill over up to 12 months. Over 8.9 million people have already filed their tax return, and taxpayers are still obliged to pay their bill by January 31. Interest will be charged from February 1 on any outstanding liabilities. The HMRC has encouraged everyone who cannot file by that time, to file online by February 28.
A press release quoted Harra as saying, “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.”
He added, “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.”
Late filing penalties are normally applied to all returns filed after the January 31 deadline. However, they are cancelled if the payer has a reasonable excuse. This year, the HMRC has waived late filing penalties for a month to help taxpayers and agents unable to meet the deadline. The department has also increased support for customers who may need help with their liabilities.
Once they have completed their 2019-20 tax return, customers can set up an online payment plan to spread Self Assessment bills of up to £30,000 over up to 12 monthly instalments.
