Can I be fined for not filing my self-assessment tax return on time?

SELF-ASSESSMENT tax returns must be submitted on time – or you could face a hefty fine.

Up to four million Brits expected to self-assess this year still haven’t filed their taxes, according to HMRC.

1

The taxman has extended the hard deadline on filing tax returns from January 31 to February 28.

But you might still face interest fees of 2.75% per year if you owe a tax payment on January 31 and don’t pay on time.

However, late filing fees won’t apply till after February 28.

It’s not a leap year, so charges will begin on March 1.

What are the late filing fines?

HMRC charges those who file their self-assessment tax return late from the first day after the deadline.

Most read in Money

There’s an immediate £100 penalty fee and then a £10 charge for each day the return isn’t filed after that.

The daily charges are capped at 90 days, so the maximum you can be forced to pay is £900 – plus the £100 initial fine, that makes £1,000.

If you’re six months late, there’s a further £300 fine or 5% of the money you owe – whichever is higher.

That’s on top of the daily £10 charges built up so far, so there’s no shortcut to a smaller payment once you’re late.

And after 12 months, another £300 or 5% fine applies.

If you deliberately haven’t filed your tax return, a fine of up to 100% of the tax due could then be sent.

What’s different this year?

Due to the pandemic, HMRC is waiving all late payment fees as long as you file your tax return by February 28.

Plus, if you owe cash on January 31, HMRC is waiving the 5% late payment fee if you pay before February 28.

And if you are unable to pay your tax owed or fear your tax bill may be too high, you have until April 1, 2022 to make a time to pay arrangement.

You can do so via the government website.

Here’s our updated how-to guide on filing your self-assessment tax return online.

You’ll have to do it online as the paper deadline passed on October 31, 2021.

Martin Lewis reminded employees to check their tax code to avoid being overcharged hundreds of pounds.

Brits have also been warned their national insurance tax rates could be hiked in April.

And here’s how you may be able to claim a council tax rebate worth hundreds of pounds.

This post first appeared on thesun.co.uk