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14.74% Of People Have Missed The Self-Assessment Tax Return Deadline And Are Being Charged Interest

The self-assessment tax return deadline of 31st January has passed and there are still 1.8 million people yet to file.

Whilst the payment deadline has been postponed to 28th February, tax returns still had to be filed by 31st January. Interest will be charged on the tax liability until the tax return is filed.

Any outstanding balances must be paid or a payment plan arranged before 3rd March otherwise HMRC will charge a 5% late payment penalty.

Anyone not able to afford their tax bill are able to apply to spread the cost however there are requirements that must be met to do so:

  • All tax returns must be filed
  • No other tax debts
  • No other HMRC payment plans
  • The debt must be between £32 and £30,000

The payment plan must be set up no later than 60 days after the due date for payment but HMRC have urged people to do this before 3rd March to avoid the 5% penalty

Please note that interest will be charged on payment plans. People not meeting these requirements but needing help to spread the cost should contact HMRC to discuss further.

Those who are not yet able to file their tax return should pay an estimated amount as soon as possible, minimising any interest and late payment penalty. Self-employed people can use this Gov.uk calculator to help estimate their tax bill by clicking here.

For those that do not file their tax return before 28th February:

  • The other late filing penalties (daily penalties from 3 months, 6 and 12 month penalties) will operate as usual
  • The payment deadline remained 31st January and interest will be charged on late payment. The current rate of late payment interest is 2.6%
  • A 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, before 3rd March 2021 - further late payment penalties are charged at 6 and 12 months, on tax outstanding where a payment plan has not been set up.

We offer a bespoke tax return service allowing clients to send us their income and expenses information as they go to avoid the 11th hour stress of trying to find everything, this allows us to file earlier which is massively beneficial as well as giving you peace of mind that your tax return is under control. Our video below gives more information.



 

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