SELF-employed workers have until midnight tomorrow to file their self-assessment tax return or risk being slapped with extra charges.
HMRC last week announced it has scrapped the £100 late payment penalties for tax returns submitted online before February 28 2021.
Taxpayers should still meet the January 31 deadline to avoid being hit with extra charges Credit: Alamy
But from February 1, any outstanding payments will still be charged interest at a rate of 2.6%.
Waiving the penalty will also only apply to late tax returns submitted online.
Those that are filed at the bank or by post after the deadline will still be subject to the fine.
How do I fill in the tax return?
BEFORE you can complete and submit your tax return, you’ll need to have a unique taxpayer reference (UTR) and activation code from HMRC.
This can take a while to receive, so if it’s the first time you’re completing self-assessment, make sure you register online as soon as possible.
To sign in or register visit the “Self Assessment tax return” section of HMRC’s website.
If you’ve already signed up for self-assessment, you can find your UTR on relevant letters and emails from HMRC.
HMRC accepts your payment on the date you make it, not the date it reaches its account – including on weekends.
So if you want to pay by bank transfer you can do so up until the evening of January 31, but it’s best to get it out the way in advance.
If you need to change your tax return after you’ve filed it, you can do so within 12 months of the original deadline or you can write to HMRC for any changes after that.
Filling in your tax return can seem daunting, but with our step-by-step guide you’ll have it sorted in no time.
Late payments submitted after the February 28 deadline will be fined as normal, unless you set up a payment plan plan before March 3.
HMRC said removing the penalty is aimed at “easing pressure” on taxpayers.
But a spokesperson added: “The self assessment deadline has not changed so customers’ other obligations remain the same, including to pay their bill by January 31 and there are significantly enhanced Time to Pay (TTP) arrangements to help with this.”
HMRC has already said it will accept Covid disruption as a reasonable excuse for people missing the deadline, although they’ll still be hit with a fine.
Customers will then have to appeal the penalty that’s been issued by proving they have been negatively impacted by coronavirus, which has caused a delay in making the deadline.
Self-assessment customers face a penalty of £100 if their tax return is up to three months late.
Further fines of £10 a day are applied after three months, up to a maximum of £900.
For payments late by six months, you’ll be fined 5% of the tax you owe or £300, whichever is greater.
You can calculate how much your fine will be on the Gov.uk.
More than 8.9million customers have already filed their tax return.
Your earnings are used to determine the amount of tax you owe for 2019/20 and the amount of any payments on account for 2020/21.
Unfortunately, you can’t delay filling your self-assessment tax return but you can appeal a penalty.
While in February 2020, a woman got a £1,316 HMRC tax fine refunded after The Sun stepped in.