Self Assessment Late Filing Penalty Extension

The government has today announced that the £100 penalty for the late filing of the 19/20 self assessment tax return (due 31 January) will not be charged provided the return is filed online by 28 February.

Liabilities will still be payable by 31 January (interest will be charged at 2.6% per annum on payments made after this date) however those that cannot afford to pay their bill on time can apply for a payment plan with HMRC to spread it over 12 months.

This is not guaranteed to be accepted, is only available to those with liabilities under £30,000 and must be applied for with HMRC directly once the return has been submitted – it is not an automatic deferral arrangement like the July payment on account deferral scheme implemented last year. Interest will also be charged on the outstanding liability whilst the plan is in place.

Details of how to apply for a payment plan can be found here: https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments

Clearly we would encourage those who have not yet completed their 19/20 tax returns to do so with the usual deadline in mind, however hopefully this provides some assurance to those for whom the upcoming filing deadline was causing concern.

If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd