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Dave Legion

Dave Legion

Jan 19, 2021

HMRC are waiving penalties for late self-assessment tax returns (2021)

Self-employed taxpayers now have until the 28th of February 2021 to file their online self-assessment for 2019-2020 tax year which ended on the 5th of April 2020.

HMRC are waiving penalties for the late filing of UK self-assessment tax returns.

You will NOT be fined if you file your self-assessment online by the 28th of February (a month later than the usual deadline of the 31st of January.)

You will still be fined for late payment however and are expected to pay your tax bill by 31st of January 2021.

Let's make it clear. HMRC still wants people to file on by 31/01/2021 but have also highlighted if anyone is late then they will not be penalised as long as they file by the 28th of February 2021. Apparently, you can file after the 28th of February deadline without penalty if the delay is due to a COVID19 related issue. 

Let's make another thing clear: HMRC aren not confirming exactly what situations this applies to.

TAXO'D TOP TIP - Any outstanding tax bills will still need to be paid by 31st of January 2021. 

Do I need to file a Self Assessment?

You will need to complete a self-assessment if you are:

  • an individual earning an income (but you are not employed by an employer, paying your income at source)

If you answer YES to any of the following then you will need to complete a tax return:

  • Were you self-employed with an income of more than £1,000?
  • Was your income more than £50,000, and you / your partner claimed child benefit?
  • Did you earn more than £2,500 from renting property, or from other untaxed incomes?
  • Did you earn more than £100,000 in taxable income?
  • Did you earn £10,000 or more before tax from savings, investments, shares or dividends.
  • Did you earn income from abroad, or lived abroad and had a UK income?
  • Did you need to pay capital gains tax?
  • Did you receive income from a trust?
  • Was your state pension more than your personal allowance?
  • Did HMRC tell you that you didn't pay enough tax last year?
  • Did you file a self-assessment last year?
TAXO'D blog - HMRC waiving penalties

How do I register to file for Self-assessment?

At this moment in time, it is crucial to register as soon as possible so that a reference number can arrive with you before the deadline. You can register by visiting the HMRC website. You will then receive a letter with your unique taxpayer reference, which you will need to file your tax return.

If you already have your UTR then you will just need to register for the online service.

Is a possible to still file via the post with a paper tax return?

Unfortunately no. The deadline for this was 31st of October 2020. Your only option now is to file online or make it https://www.taxod.com/

What if I can't pay the tax I owe?

You can pay your tax bill by bank transfer, debit card or cheque. You can also pay at your bank or building society if you have a paying-in slip from HMRC. If however, you cannot pay your tax bill then contact HMRC on 0300 200 3822 (Monday to Friday, 8-4) as soon as possible, as you may be able to arrange to pay back the tax you owe over agreed monthly instalments via the HMRC 'Time to Pay' repayment plan.

What is the 'Time to Pay' repayment plan?

If you owe less than £30,000 tax you will be able to apply for HMRC's 'Time to Pay' which is a repayment plan to spread your tax bill over 12 months in monthly, direct debit instalments.

To qualify for this service you need to have no outstanding tax returns, tax debts or other payment plans set up. To arrange, contact HMRC on 0300 200 3822 (Monday to Friday, 8-4).

TAXO'D TOP TIP - This is not a free service. You will be charged 2.6% interest from 1st of February 2021 until your bill has been repaid in full.
TAXO'D blog - HMRC waiving penalties

What happens if I miss the deadline?

If you were unable to file because of the impact of Covid19 then this will be accepted as a reasonable excuse for not filing on time. HMRC have confirmed any penalties will be cancelled provided you file as soon as possible after that.

As previously mentioned above, HMRC have not released a statement on what exactly counts as a valid coronavirus-related reason. Just be aware - It is a £100 penalty if you fail to submit by the deadline and further penalties of £10 a day are applied after three months, up to a maximum of £900. 

Why not let TAXO'D tax return app for freelancers handle all of your tax woes?

We provide an end-to-end tax solution for all freelancers and most self-employed tax payers. Record as you go, know what you owe and file direct to HMRC. No Green Form. No More Accountants. All from your phone or desktop.

TAXO'D is a salary tax calculator. You record as you go (on your phone or your computer) day by day, throughout the tax year. As the weeks unfold and you are actively recording your income and expenses. With TAXO'D personal tax app - you will see in real-time displays the tax and National Insurance that you owe.With TAXO'D tax return software know exactly what tax you owe and when you owe it. Simple.

TAXO'D mobile tax tool does away with the need for an accountant, saving you further money and time. If you are earning money independently and responsible for your own taxes then sign up today. And find out why TAXO'D is the best self assessment software for freelancers and contractors.

Tax Sucks! Spend less time and money on it with TAXO'D tax filing app

Disclaimer: This is simply a guide and should not be treated as tax advice. Contact HMRC directly if you need tax advice.

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TAXO'D blog Author

Dave Legion

Founder / CEO of TAXO'D

Award-winning freelance Designer, Director & Animator and tax vigalante

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TAXO'D.  Beautiful, simple, award-winning, end-to-end accounting solution for freelancers. Record as you go. Know what you owe. Tax return, done. TAXO'D.  Beautiful, simple, award-winning, end-to-end accounting solution for freelancers. Record as you go. Know what you owe. Tax return, done. TAXO'D.  Beautiful, simple, award-winning, end-to-end accounting solution for freelancers. Record as you go. Know what you owe. Tax return, done.
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