It is best to submit your tax return by January 31st regardless of the HMRC extension
Self-employed people have an extra month to file their tax return without penalty. However, experts warn that you should meet the original deadline.
Now you have until February 28 to file your return as HMRC has decided to give companies a respite amid COVID-19.
Jim Harra, Managing Director of HMRC said, “We can assume that most of these people will have a valid reason for the late filing caused by the pandemic.”
Why should you still file your tax return by January 31st?
Nimesh Shah, CEO of Blick Rothenberg, warned of the possible outcomes of the news, saying: “Certain claims and elections may have to be filed by January 31st (usually via tax returns) and taxpayers need to be clear about the wider implications of the Filing after January 31st – you may not be penalized for late filing of £ 100, but there could be other consequences related to your tax affairs. “
He added: “I would like to continue to urge self-employed people to submit their return by January 31st as they run the risk of being excluded from future government support. The government has not yet announced the eligibility criteria for the fourth SEISS grant, but I assume HMRC would like the 2019/20 tax return dates to make a valid claim. “
In addition, you are still required to pay your bill by January 31st. Starting February 1st, all outstanding liabilities will earn interest. You can pay online, through your bank, or by post before filing.
Those who cannot afford to pay their bills on time can apply online to spread their bills over the next 12 months. You must file your 2019/20 tax return before a payment arrangement can be made. If you have self-assessment debt in excess of £ 30,000, or if you need more than 12 months to make your repayments, you can still arrange a payment deadline by calling the self-assessment line on 0300 200 3822.
Grace Taylor, Senior Account at The Accountancy Partnership, said, “It is important to note that the renewal only applies to late filing penalties. Nobody likes filing their tax returns, but it is of the utmost importance that the records are filed in a timely manner to avoid penalties and fines. If you have more time to do it, it shouldn’t affect the urgency of the filing.
“It’s also the busiest time of year for accounting firms, so if you need professional help with your tax return organization, you can reach out to an accounting firm as early as possible to find a firm that can help . “
Over 8.9 million individuals and companies have already submitted their returns, but millions have yet to do so. Last year, HMRC reported that 958,296 self-assessment tax returns were late, and this year it appears even more people may miss the deadline.
Taxman gives self-employed people more time to file their tax returns