SELF-assessment tax payers have until midnight today to file their return and avoid a £100 fine.
The deadline to submit tax returns for 2019/20 was January 31 but HMRC waived the late filing fine as long as they are submitted by February 28.
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Delaying the fines was aimed at helping those who were struggling to meet the deadline due to the impact of the third national lockdown.
But tax payers will still have been charged interest worth 2.6% of the outstanding amount every day until the payment is made from February 1.
According to HMRC, nearly 2million people missed the end of January deadline this year.
Tax returns need to be filed online as those returned by post or via the bank will still incur the fee.
How do I fill out the tax return?
Here’s what you need to know:
BEFORE you can complete and submit your tax return, you’ll need to have a unique taxpayer reference (UTR) and activation code from HMRC.
This can take a while to receive, so if it’s the first time you’re completing self-assessment, make sure you register online as soon as possible.
To sign in or register visit the “Self Assessment tax return” section of HMRC’s website.
If you’ve already signed up for self-assessment, you can find your UTR on relevant letters and emails from HMRC.
HMRC accepts your payment on the date you make it, not the date it reaches its account – including on weekends.
If you need to change your tax return after you’ve filed it, you can do so within 12 months of the original deadline or you can write to HMRC for any changes after that.
Filling in your tax return can seem daunting, but with our step-by-step guide you’ll have it sorted in no time.
Tax returns submitted after the February 28 deadline will be fined as normal.
HMRC has already said it will accept Covid disruption as a reasonable excuse for people missing the deadline, although they’ll still be hit with a fine.
Customers will then have to appeal the penalty that’s been issued by proving they’ve been negatively impacted by coronavirus, which has caused a delay in making the deadline.
How much could I be fined if I hand it in late?
Normally, a 5% late payment penalty is charged on any unpaid tax that is still outstanding after 30 days.
After this, you get charged another 5% of what you owe at six months, and another 5% again at 12 months.
But because of the coronavirus pandemic, HMRC has agreed to waive the 5% payment penalty charged on unpaid tax that is still outstanding on 3 March 2021, as long as you pay or set up payment plan by 11.59pm on April 1.
A 5% late payment penalty fee will still be charged after 1 April.
At six months, you’ll be fined 5% of the tax you owe or £300, whichever is greater.
You’ll be charged this again at 12 months, or you could be asked to pay 100% of what you owe in full.
You can calculate how much your fine will be on the Gov.uk.
What if I need more time?
HMRC has a Time to Pay arrangement which breaks down what you owe into monthly instalments to make it more affordable.
Due to the financial impact of the pandemic, it’s been made available to more people who are struggling to pay their tax bills this year.
HMRC says more than 97,000 people have already signed up for its Time to Pay arrangement.
To be eligible for the arrangement, the following must apply:
- You owe £30,000 or less
- You do not have any other payment plans or debts with HMRC
- Your tax returns are up to date
- It’s less than 60 days after the payment deadline (January 31)
You can choose how much to pay straight away and how much you want to pay each month. You’ll have to pay interest.
You can set up a payment plan online, choosing how much you want to pay upfront and how much you want to pay in instalments.
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However, you will still be charged 2.6% interest on any tax that’s outstanding after January 31.
If you can’t use the online service, call the self-assessment payment helpline on 0300 200 3822.
They’re open Monday to Friday, 8am to 6pm (closed on bank holidays).
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