What the HMRC extension means for paying your tax this year
February extension means £100 fines will be waived but interest still added to unpaid bills as normal
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Your support makes all the difference.More than 12 million people are expected to file a self-assessment tax return this year, with the typical 31 January deadline nearly upon us.
But in light of the coronavirus pandemic and the financial hardship faced by many as a result, the government has made some changes to the rules and sanctions that usually apply.
Saying it recognised the “immense pressure” many are under, HMRC has effectively extended the self-assessment deadline until 28 February.
While the official deadline is still 31 January, the usual £100 fine will not apply if people file their returns up to four weeks later – providing slight relief to some three million people who had still not filed their 2019-20 return as of Monday.
But taxpayers are still obliged to pay their bill by 31 January, and interest will be applied to any outstanding balance from the following day.
Tax can be paid either online, via a bank, or by post ahead of filing a return.
Those who are unable to pay on time can apply online to spread their bill over up to 12 months – in what is known as a Time to Pay arrangement – but will need to file their 2019/20 return before setting this up.
While the threshold for this service previously applied to those with tax liabilities of up to £10,000, this has now been raised to £30,000.
Taxpayers can apply to Time to Pay online, and more than 42,000 people have already done so without having to call HMRC.
Those with bills exceeding £30,000, or who need longer than 12 months to pay their bill, can call 0300 200 3822 to discuss Time to Pay, according to the government website.
“We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they can’t pay it straight away,” said HMRC chief executive, Jim Harra.
“But we recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January.
“Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.
“We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
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