HomeTaxTime running out for two million Self Assessment taxpayers

Time running out for two million Self Assessment taxpayers

HMRC is reminding Self Assessment taxpayers who deferred filing their return in January that the new 28 February deadline is looming large.

Because of the pandemic, the tax authority extended the usual 31 January filing deadline by a calendar month, giving customers extra time to complete their 2020/21 tax return. They have until Monday 28 February to file their return to avoid a late filing penalty.

About 12.2 million customers are expected to file a tax return for 2020/21 tax year, with more than 10.2 million received by 31 January.

HMRC has given taxpayers until 1 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty.

Interest has been applied to all outstanding balances since 1 February.

One week left to complete Self Assessment returns

HMRC’s Director General for Customer Services, Myrtle Lloyd, said: “There is one week left to complete your tax return if you haven’t done so already. And for anyone who is worried about paying their tax bill, there is support available – search ‘pay my Self Assessment’ on GOV.UK.”

From 22 February, taxpayers will be able to make Self Assessment payments through the HMRC app.

Those choosing to use this facility can either connect to their bank to make their payments or pay by Direct Debit, personal debit card or corporate/commercial credit or debit card.

A full list of the payment methods taxpayers can use to pay their Self Assessment tax bill is available on GOV.UK.

Time to pay deadline also approaching

The last date to set up a self-serve Time to Pay arrangement online is 1 April 2022. In this case, HMRC will not charge you the initial late payment penalty. This would usually be 5% of the amount still outstanding by 3 March.

However, HMRC will charge interest (currently at 2.75% a year) on tax paid late, even if you are paying under a time-to-pay arrangement – a service that around 100,000 taxpayers are utilising, as reported on here.

Sign up to receive the latest news

    Related News