Breathing space for tax-payers as self-assessment deadline looms

Thousands of self-assessment taxpayers in Sunderland are being given some breathing space because of the coronavirus crisis.

HM Revenue and Customs (HMRC) say the city's 24,000 people who pay tax in this way will not be penalised for late online returns – if they file them by February 28.

HMRC is encouraging anyone who has not yet filed their tax return to do so by January 31, but anyone who cannot meet that deadline will not receive a late filing penalty if they file online by the end of February.

Taxpayers are still obliged to pay their bill by January 31 and interest will be charged from February 1 on any outstanding liabilities.

HMRC’s chief executive, Jim Harra, said: “We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they can’t pay it straight away.

"But 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 January 31.”

He added: “Not charging late filing penalties for 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.

"We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”

Normally, late filing penalties are applied to returns filed after the deadline.