Taxman gives breathing space over late returns
IF YOU’VE been worried about completing your tax return by Sunday’s deadline, there’s good news.
HMRC announced on Monday that self-assessment customers will not receive a penalty for submitting late online tax returns — as long as they file by 28 February.
However, if you don’t file by Sunday, you’ll be charged interest on any tax you owe from next Monday, 1 February.
“We recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January,” said HMRC’s chief executive Jim Harra.
“Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.”
The tax authorities are still urging anyone needing to complete a self-assessment form to do so by the 31 January online returns deadline, if possible.
If you’re going to owe tax, then it’s still essential to file by Sunday to avoid being charged interest.
But an extra four weeks’ grace will be a massive relief to those that have struggled to complete the return.
The new deadline is 28 February but if you don’t file by then, you could still face a fine.
The penalty for missing the filing deadline is £100, but once a return is over three months late, the penalties quickly mount with daily penalties of £10, up to a maximum of £900.
However, if you are slapped with a penalty and disagree with it, you can appeal.
New data shows that of the £275 million in penalties imposed by HMRC for late payment of self-assessment tax last year, £167million was later cancelled.
“HMRC gets it wrong at times and will correct its mistakes when presented with the evidence,” pointed out Graham Boar of UHY Hacker Young, which compiled the data.
Meanwhile fraud prevention service Cifas is warning taxpayers to be wary
As the deadline for selfassessment tax returns approaches, criminals will look to dupe taxpayers
of scams, after HMRC reported a 47% increase in reports of emails and texts impersonating the tax office.
Fraudsters hope the impending deadline will panic taxpayers into sharing their financial details or even paying fictitious tax bills.
“As the deadline for self-assessment tax returns approaches, criminals will look to dupe taxpayers,” warned Mike Haley of Cifas.
“HMRC will never ask you to provide personal or financial details, download attachments or click on links in emails or texts.”
Forward any dodgy emails claiming to be from HMRC to phishing@hmrc. gov.uk and suspicious texts to 60599.