Delay to self-assessment late filing penalties welcomed
Following the news that HMRC is waiving late filing self-assessment penalties for one month, Royal London’s consumer finance specialist Sarah Pennells comments:
“People who will struggle to file their tax return by January 31st will welcome the fact that HMRC is giving them an extra month before it imposes any late filing or late payment penalties. But anyone who can file by the deadline of 31st January should do so. While you won’t have to pay a late filing penalty as long as you file your tax return by February 28th, you will be charged interest from February 1st on any tax you owe. If you can’t make the 31st January deadline, try and file your tax return as soon as you can to avoid a last-minute rush before the end of February.”
Royal London’s top tips for taxpayers, to ensure they file their tax returns within plenty of time:
- Think ahead and start early, leaving plenty of time to prepare. The option to do your tax return opens in April with the beginning of the new tax year, so try not to leave it until the last minute where you can make mistakes when rushing.
- Doing it early gives you more time to collect all the documents and information you need.
- If you are not registered with HMRC for this year’s online tax returns, you will need an activation code which can take up to 10 days to arrive.
- When you’re self-employed, tax returns are your only real way of proving how much you earn. The sooner you file your 2020/21 return, the quicker you’ll have an extra year’s worth of accounts to show, which could help you with applications for things like mortgages and other loans.
- Sometimes people end up overpaying tax, which results in a refund being paid. The sooner you pay your 2020/21 tax bill, the sooner you’ll get your refund if you’re owed one.
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.