It seems that HMRC has finally acknowledged the difficulties facing many self-assessment taxpayers because of the Coronavirus Pandemic sweeping through all four corners of the country.
"Nobody saw it coming!"
There's less than a week to go before the end of January, and it seems that HMRC was down over three million tax returns so had to make a decision. There has been much talk of HMRC allowing easier appeals to late filing penalties, so this blanket extension for all taxpayers is a very sensible decision on their part.
But there is a sting in the tail to this story, so it's not all a happy ending. Although the tax return filing deadline has been extended to the 28th of February, the due date for paying any outstanding tax hasn't!
This means that should you choose to file your tax return in February; you will be charged interest and surcharges if you don't pay all the tax outstanding by the 31st of January. You'll be attracting daily interest of 2.6% and a 5% surcharge should you not pay everything you owe by the 2nd of March.
So, you won't get the £100 late filing penalty, but your tax return will still be deemed as late.
Until next time ...
ROGER EDDOWES Business Godparent
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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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