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Beyond the balance sheet

Self Assessment Tax Return - No penalty for returns filed by 28 Feb

Christina Nawrocki 10/2/2021 2 minute read

Christina Nawrocki FCCA, on HMRC's extension for filing your tax return.

Missed the self assessment tax return deadline due to disruption from the COVID-19 pandemic?

HMRC have decided to provide an additional 28 days filing window for anyone who was unable to file their return on time. They have confirmed that you won't receive a penalty so long as you complete your return by 28 February 2021.

However, do note that the tax remains due by 31 January 2021, otherwise interest will be charged from 1 February on any outstanding liabilities.

If you're unsure of your exact bill to date we recommend you make a payment as soon as possible to stop interest accruing or look to set up a payment plan.

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Spreading the bill into instalments

Some more good news, HMRC have set up an online process whereby those with a liability of £30,000 or less can spread payment of their bill over 12 months. You'll have to have submitted your 2019/20 tax return and all tax previous tax returns must be filed also. Online applications are then granted via the time to pay arrangement. The online process involves setting up a direct debit meaning it's available to taxpayers but not agents.

This is very good news for those that are struggling in the current economic climate and provides some welcome relief to tax payers who were concerned about settling their bill this year.

Methods for paying your tax bill

You can settle your tax bill: 

Online - This can be done through HMRC's online payment system. The whole amount must be paid from one card to ensure the tax payment is processed. This method of payment will reach HMRC by either that day or the next day.

Telephone banking - The same as online but over the phone, this will reach HMRC by either that day or the next day.

Cheque - Cheques must be made out to "Her Majesty's Revenue & Customs only" followed by your UTR. This has to be posted to HMRC along with your paying in slip. The deadline for payment is counted as the day of receipt and you need to factor in at least 3 working days for delivery.

Bank - You can go and pay your tax bill at the bank over the counter. It's a similar process to cheques, meaning you need to factor in 3 working days.

Direct Debit - This is an agreement with HMRC whereby timing of the payment takes place before the payment on account deadlines of 31 January and 31 July. The first direct debit payment takes 5 working days to process and after that it's 3 days. 

CHAPS - Details for this payment method are listed on the gov.uk website, this will usually process on the same working day.

BACS - Again details for this are listed on the gov.uk website and it will process in 3 working days.

Of note, you can no longer pay at the post office and personal credit cards are not accepted.

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The content of this post was created on 10/02/2021.
Please be aware that information provided by this blog is subject to regular legal and regulatory change. We recommend that you do not take any information held within our website or guides (eBooks) as a definitive guide to the law on the relevant matter being discussed. We suggest your course of action should be to seek legal or professional advice where necessary rather than relying on the content supplied by the author(s) of this blog.

 

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