Self Assessment 2021 update

Self Assessment Tax Return

On the 25th of January 2021 HMRC announced in a Self Assessment 2021 update customers will not receive a late filing penalty for their late tax return if they file online by the 28th of‌‌ ‌February 2021.

This easement is for late filing penalties only. It does not affect any other tax obligations. A Self Assessment return received in February will be treated in the same way as a Self-Assessment return filed in February in a ‘normal’ year where there is a reasonable excuse – the penalty will not be charged but the return is treated as late for the purposes of enquiry windows, etc.

Tax still needs to be paid by the 31st of‌‌ ‌January 2021 and Interest will be charged from the 1‌st of‌ ‌February 2021 on any outstanding liabilities. If any tax remains outstanding on the 3rd of‌‌ ‌March 2021, customers will be charged a late payment penalty of 5% of the amount still due.

Time to pay – Self Assessment 2021 update

Customers that do not pay in full by the 31st of‌‌ ‌January 2021 will be able to use the Self Serve Time to Pay service on GOV.UK to set up an affordable plan where you can pay over time in instalments. Interest will still be charged but if they set up the payment plan before the 3rd of‌‌ ‌March 2021, they won’t be charged a late payment penalty as long as they keep to the terms of the payment plan.

The easement for late filing penalties will be applied to SA700s and SA970s filed in February. These returns can only be filed on paper.

For SA800 and SA900 HMRC will apply the easement if customers file online by the end of February. The paper deadline was 31‌st of‌ ‌October 2020 so if customers file on paper in February they will not get the easement.

Those customers affected by HMRC Exclusions, who had until the 31st of‌‌ ‌January 2021 to file on paper, will avoid a late filing penalty provided they file their return by the 28th of‌‌ ‌February 2021.

Get returns done as soon as is possible

All of this highlights the importance of getting your Self Assessment tax returns done as soon as you can.

If you need help with your Self Assessment tax return for 2019-20 contact me now.  I can turn it around in 10 to 14 days.

And for next tax year 2020-21 why not get it done early?  I always encourage all my clients to and now they don’t have to worry about this.  They also know exactly where they are with how much they owe and when and, maybe most importantly, they never get fined because they’ve missed the deadline.

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