HMRC have announced that there is no automatic fine for missing the 31st January self assessment deadline. But you must get your 2019-20 tax return to HMRC by 28th February 2020.
Why have HMRC extended the SA filing deadline?
Jim Harra, HMRC’s Chief Executive, said: “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.
“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.”
It’s an acknowledgement that our current situation is making everything much slower for taxpayers, accountants and tax agents. I think we can all understand that. It has also complicated the tax affairs of many self employed people, at least for the final two months of the 2020 tax year.
Usually, any tax return received after 11.59pm on 31st January triggers an automatic £100 fine for that individual. This will not happen for any 2019-20 tax returns that are received by 28th February.
How many people does this affect?
HMRC expect 12.1million self assessment tax returns for the 2019-20 tax year. So far, over 8.9 million people have already submitted their online filing. So this will potentially help the remaining 3.2 million taxpayers. It also saves HMRC wasting time administering these fines, or cancelling penalties that have a reasonable excuse.
You still have to pay your tax bill by 31st January
The deadline for paying your 2019-20 tax bill hasn’t changed and you will be charged interest from 1st February if you’re late.
HMRC are extending the self assessment phone helpline and webchat on 30th and 31st January, to help people with this. They are also open during the week, running to their reduced hours timetable.
Phone and card payment lines
- Saturday 30th January: 8:00am to 6:00pm
- Sunday 31st January: 9:00am to 6:00pm
Webchat
- Saturday 30th January: 8:00am to 8:00pm
- Sunday 31st January: 8:00am to 8:00pm
What you need when you get in touch with HMRC
Security is even more difficult for HMRC at the moment, so you’ll have to prove your identity when you get in touch with HMRC online, or by phone.
You must have two of the following:
- credit reference agency data
- tax credits
- P60/payslip
- UK passport
Get these ready before you phone or access the webchat. HMRC staff won’t be able to help you without them and this bit is your responsibility.
Trouble paying by 31st January?
HMRC have a new Time to Pay system, which allows taxpayers to spread their tax bill over 12 instalments. This is often a more affordable way to manage this bill.
If you owe less than £30,000, you can set up this arrangement online. If your tax bill is more than £30,000, you need to phone 0300 200 3822 to see if you can set up an instalment plan. In either case, you must have filed your 2019-20 self assessment tax return first.
The best thing to do is to get your 2019-20 self assessment tax return in by 31st January if you can. Particularly if you need to set up instalment payments. But if you’re struggling to get hold of your tax advisor, or getting all your information together because everything is slower, then you’ve got some breathing space.
