HMRC to waive late fee fines for many who file self-assessment tax returns 28 February

How do I register to file my tax return on-line?

The deadline to register for a self-assessment tax return was technically 5 October 2020 – however typically you will be OK in case you register now. However it’s essential you register ASAP, as it may take as much as 10 working days so that you can obtain your reference quantity.

If that is your first time submitting a return, you possibly can register visiting the HMRC web site.

HMRC will then arrange your self-assessment on-line account and ship you a letter together with your distinctive taxpayer reference – a 10-digit code which you will want the primary time you log in.

If it is your first time submitting on-line however you have already got a reference quantity – for instance, since you’ve beforehand filed a paper return – it’s best to be capable of skip this step and simply register for the net service.

What if I’ve misplaced my login/password particulars?

You will must log into your self-assessment account together with your Authorities Gateway ID or utilizing Confirm.

  • Forgotten your Authorities Gateway particulars? You’ll be able to retrieve your consumer ID or reset your password on-line.
  • Forgotten your Confirm particulars? You will want to make use of the forgotten username or password perform of the supplier which has verified your identification. See for extra.

Should you’re signing into your self-assessment account for the primary time and have forgotten your distinctive taxpayer reference quantity, it’s best to be capable of discover it on earlier tax returns or on different paperwork from HMRC, corresponding to fee reminders. It is also obtainable in your HMRC on-line account.

If you cannot discover your distinctive reference, you possibly can telephone the self-assessment helpline on 0300 200 3310.

Can I file a paper return as an alternative?

The deadline for submitting paper returns was 31 October 2020 – so you will need to file your return on-line to keep away from paying a penalty. Should you have been to file a paper return now you’d be fined.

How do I make my funds ‘on account’?

It isn’t simply tax returns that have to be filed 31 January 2021. Should you have been on account of make an ‘on account’ (ie, advance) fee 31 July 2020 – and never everybody has to – the Authorities gave you an additional six months to pay, however that runs out on 31 January 2021 until you have agreed a separate compensation plan with HMRC. This fee is supposed to cowl roughly half of your 2019/20 invoice and is calculated through the use of half of your precise invoice for the 2018/19 tax yr.

You will additionally must pay any remaining tax owed from the 2019/20 tax yr (often known as a balancing fee) – until you have additionally agreed a compensation plan – in addition to make your first fee on account for the 2020/21 tax yr. Crucially, miss these funds and you will be fined and charged curiosity. 

You’ll be able to pay your tax invoice  financial institution switch, debit card or cheque. You can even pay at your financial institution or constructing society in case you have a paying-in slip from HMRC.

HMRC accepts cash underneath the Sooner Funds system, which permits money to undergo in two hours. Nevertheless, every financial institution has a restrict on how a lot you possibly can switch underneath Sooner Funds. The bounds vary from £5,000 to £100,000. See every supplier’s restrict. You’ll be able to not pay the invoice utilizing a private bank card or on the publish workplace.

What if I am unable to afford to pay the tax?

In case your invoice is right however you discover you possibly can’t afford it, contact HMRC as quickly as attainable, as you could possibly keep away from late fee penalties coming to an association to unfold your funds over a time frame – see under for extra on this. (Additionally see our Free Tax Code Calculator to make sure you’re on the fitting tax code).

You will want an affordable excuse for not paying your tax on time. That is often one thing sudden or outdoors your management that stopped you assembly a tax obligation. For instance:

  • Your associate or one other shut relative died shortly earlier than the tax return or fee deadline.
  • You had an sudden keep in hospital that prevented you from coping with your tax affairs.
  • You had a severe or life-threatening sickness.
  • Your laptop or software program failed simply earlier than or whilst you have been getting ready your on-line return.
  • Points with HMRC’s on-line companies.
  • A hearth, flood or theft prevented you from finishing your tax return.

What if I’ve signed as much as a compensation plan?

Those that owe tax of lower than £30,000 (and greater than £32) in January 2021 (in order that’d be the deferred July fee and January 2021’s ‘on account’ fee) have been in a position to make use of HMRC’s ‘Enhanced Time to Pay’ mechanism to agree a compensation plan to unfold that tax invoice and repay it direct debit over as much as 12 months – even when that goes past the 31 January 2021 deadline.

To make use of this service, you should have filed your 2019/20 tax return the 31 January 2021 deadline and arrange the compensation plan no later than 60 days after the due date of a debt. As well as, you should haven’t any excellent tax returns, different tax money owed or different fee plans arrange. You’ll be able to arrange a Time to Pay plan on-line way of your tax account, or you possibly can name HMRC on 0300 200 3822 (open Monday to Friday, 8am to 4pm).

Nevertheless, keep in mind that those that use this technique pays easy curiosity (that means it does not compound) of two.6% a yr from 1 February 2021 till their invoice has been repaid in full.

What if I miss the deadline?

HMRC has confirmed that if somebody is unable to file due to the affect of Covid-19 that this shall be accepted as an affordable excuse for not submitting on time, and any penalties shall be cancelled supplied you handle to file as quickly as attainable after that.

It has, nevertheless, been imprecise on what precisely counts as a legitimate coronavirus-related cause. HMRC will not give us any specifics, and says solely that it will take a look at every state of affairs on a case--case foundation – so it is unclear, for instance, in case you can file late since you ran out of time on account of homeschooling.

You will be charged a £100 penalty in case you fail to submit your return the deadline – even when there isn’t any tax to pay.

Additional penalties of £10 a day are utilized after three months, as much as a most of £900. After six months, you will get an additional penalty of 5% of the tax owed or £300 (whichever is bigger), which is repeated at 12 months.

There are additionally further penalties for paying the tax late. Should you do not pay on time, you will be charged curiosity straightaway. You will then be fined 5% of the unpaid tax after 30 days, plus 5% after six months and once more after 12 months. So in case you miss the 31 January 2021 deadline, type it as quickly as you possibly can.

The Authorities supplies an on-line software for calculating how a lot you will must pay in penalties and curiosity in case you miss the deadlines.

Who ought to I contact for additional recommendation?

The Authorities supplies assist sheets and movies for steering on submitting your tax return.

You can even contact HMRC for recommendation instantly calling the helpline on 0300 200 3310. It is open from 8am to 8pm on weekdays, 8am to 4pm on Saturdays and 9am to 5pm on Sundays. You can even get normal assist from HMRC buyer assist on Twitter.

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