About 2.3million people who took advantage of a one-month extension for sending in their self-assessment tax return must file now to avoid a £100 fine.
Last month Revenue & Customs announced it was relaxing the usual January 31 deadline for filing returns for the financial year ending April 5, 2021 – extending it to February 28 due to disruption caused by the coronavirus.
Sarah Coles, an analyst at wealth manager Hargreaves Lansdown, says: ‘You must also pay what is owed.
Pay what you owe: Last month Revenue & Customs announced it was relaxing the usual January 31 deadline for filing returns for the financial year ending April 5, 2021
If you cannot afford the bill set up a ‘time to pay’ arrangement – lessening the pain by making 12 monthly instalments. This can be done for tax bills up to £30,000.’
Any self-assessment customer who has yet to pay their tax bill or set up a payment plan has to pay interest on any outstanding balance from February 1 – currently 3 per cent.
There is an additional 5 per cent penalty levy of the amount owed if the money is not paid by April 1 – or you have not set up a time to pay arrangement.
This is an extension of the usual March 3 deadline.
