But that means that 1,790,368 taxpayers missed the deadline, which equates to 14.74% of those registered for self-assessment. This is almost double the number who failed to file in time last year and over a million more than the year before.
Those who have not filed their tax return in time won't get a late-filing penalty provided they submit it before the 28th of February. This concession was made by HMRC in response to the pandemic!
However, despite the filing extension, those that did not pay their tax by the 31st of January 2021 will be incurring interest on the outstanding balance and need to pay their bill as soon as possible.
"Either pay in full or arrange a payment plan before the end of February to avoid a 5% late payment penalty!"
HMRC understands many individuals and small businesses are experiencing difficulties this year due to the pandemic. Payment plans can easily be set up by contacting HMRC. If you are due to make payments on account, you can also reduce the amount required to pay via the online reporting tool from HMRC.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the self-assessment extension, or you're having difficulties filing your return, call me on 01908 774320 and let's see how we can help. Don't forget to stay updated with our daily social media posts on our Facebook page.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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