File outstanding self-assessment returns now to avoid further penalties. 

HMRC reported that around 1.1m taxpayers had still not filed their self-assessment tax return on 2 March. The late-filing penalty was only waived by HMRC until the end of February, meaning those who have not yet submitted their returns have incurred a £100 late-filing penalty and now face a further 5% late-payment penalty.

To avoid the 5% late-payment penalty you will need to file your 2019/20 return by the end of March and pay your tax or arrange for Time-to-Pay. If you have not filed your return by 30 April, you will start to incur further late-filing fees at the rate of £10 per day.

Time-to-Pay Portal

HMRC have created an online portal to allow you to set up an automatic TTP arrangement to clear your debt by January 2022. This portal will be open until 1 April 2021.

You can take advantage of this payment plan as long as:

• You only owe £30,000 or less
• You do not have any other payment plans or debts with HMRC
• Your tax returns are up to date
• It is less than 60 days after the payment deadline

Appealing for late filing

If you missed the 28 February deadline and are facing a £100 late-filing penalty you still have time to appeal if you feel there is a reasonable excuse for missing the deadline. However, before you can make your case and appeal the penalty, you must first file your return.

Please note if you failed to file your 2019/20 tax return by 2 March 2021 you will not be eligible to claim for the fourth or fifth SEISS grant.