HomeTaxFour million yet to file tax return ahead of deadline

Four million yet to file tax return ahead of deadline

As many as four million self assessment taxpayers are yet to submit their completed tax return and pay any tax owed ahead of the deadline on 31 January, HMRC has revealed.

With the clock ticking towards the end of the month, the tax authority urged those still to file their tax return to do so, given interest will be applied to all outstanding balances from 1 February.

As reported on Accounting Practice, HMRC recently announced they would waive penalties for one month for late filing of tax returns and late payments, which means:

• Those who can’t file their return by the 31 January deadline will not receive a late filing penalty if they file it by 28 February.

• Self assessment taxpayers who aren’t able to settle their tax liabilities by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a time to pay arrangement, by 1 April.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know some customers may struggle to meet the Self Assessment deadline on 31 January which is why we have waived penalties for one month, giving them extra time to meet their obligations.

“And if anyone is worried about paying their tax bill, they can set up a monthly payment plan online – search ‘pay my self assessment’ on GOV.UK.”

The existing Time to Pay service allows any individual or business who needs it the option to spread their tax payments over time. Self assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.

HMRC also revealed that more than 12.2 million taxpayers are expected to complete a tax return for the 2020/21 tax year.

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