The HMRC have recently announced that people required to file self-assessment tax returns will not receive a penalty if submitted late, provided that the tax return is filed online by the 28th February 2021. The deadline extension follows the realisation that many people required more time and were struggling to complete their tax returns by the original deadline set due to the ongoing effects of the pandemic.
This is an extension to the usual deadline of 31st January each year, whereby a £100 penalty would have been automatically issued. However, it is important to be aware that this is not an extension to pay any tax due for which the deadline of the 31st January still stands. For any balance not settled by the deadline, interest will start to be charged from 1st February 2021.
Despite calls towards the end of last year to extend the deadline, HMRC had indicated that the usual fines would be issued until this most recent announcement in the last week approaching the deadline.
The HMRC is also offering an online payment plan option for those struggling to pay their bill, in order to allow the payments to be spread over a 12 month period.
For more information on the deadline extension, visit the official government webpage.