Self-assessment tax returns deadline is today – how to pay and avoid late fees

SELF-employed workers have until midnight tonight to pay their self-assessment tax bill or they’ll have to pay interest and could face late payment charges.

HMRC last week announced it has scrapped the £100 late filing penalties for tax returns but it still expects you to pay your bill today.

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Taxpayers should still meet the January 31 deadline to avoid being hit with extra chargesCredit: Splash News

The deadline for filing the return is tonight, but you can avoid the £100 penalty as long as your return is submitted online before February 28 2021.

If you file at the bank or by post after the deadline, you will still be subject to the fine.

But from tomorrow February 1, you’ll be charged interest on any tax your owe at a rate of 2.6%.

And if you still haven’t paid by February 28 deadline you’ll also get another fine, unless you set up a payment plan plan before March 3.

If you’ve not filed yet, HMRC says you can pay an estimated amount to avoid the interest and any late payment fees.

The deadline for filing was extended to help those struggling due to last-minute issues caused by the latest coronavirus lockdown.

Any outstanding money still owed after you file should be paid as soon as possible to avoid extra interest and the late payment fee.

How do I fill in the tax return?

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.

So if you want to pay by bank transfer you can do so up until the evening of January 31, but it’s best to get it out the way in advance.

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.

HMRC said removing the penalty is aimed at “easing pressure” on taxpayers.

But a spokesperson added: “The self assessment deadline has not changed so customers’ other obligations remain the same, including to pay their bill by January 31 and there are significantly enhanced Time to Pay (TTP) arrangements to help with this.”

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 have been negatively impacted by coronavirus, which has caused a delay.

Self-assessment customers face a penalty of £100 if their tax return is up to three months late.

Further fines of £10 a day are applied after three months, up to a maximum of £900.

For payments late by six months, you’ll be fined 5% of the tax you owe or £300, whichever is greater.

You can calculate how much your fine will be on the Gov.uk.

More than 8.9million customers have already filed their tax return.

Your earnings are used to determine the amount of tax you owe for 2019/20 and the amount of any payments on account for 2020/21.