HMRC Extends 2019/20 Self-Assessment Tax Return Deadline Amidst Coronavirus Disruption

In a move that will bring relief to millions of taxpayers across the UK, HM Revenue & Customs (HMRC) has announced an extension to the deadline for filing 2019/20 self-assessment tax returns. This decision comes as a response to the ongoing challenges posed by the coronavirus pandemic.

The New Deadline: What You Need to Know

Traditionally, the cut-off date for submitting online self-assessment tax returns is 31 January. However, recognising the extraordinary circumstances we’re all facing, HMRC has pushed this deadline back by one month. Here’s what you need to know:

• The new deadline for filing your 2019/20 self-assessment tax return is now 28 February 2021.
• This extension applies to all taxpayers, not just those directly impacted by COVID-19.
• If you file your return by this new deadline, you won’t incur the usual £100 late filing penalty.

What If You Miss the Extended Deadline?

If you’re unable to file your return by 28 February 2021 due to coronavirus-related reasons, there’s still hope. HMRC has stated that it will accept pandemic-related disruptions as a “reasonable excuse” for late filing. However, it’s important to note:

• You must file your return as soon as possible after the deadline.
• Each case will be reviewed individually, so it’s crucial to have a valid reason for the delay.
• HMRC hasn’t provided specific examples of what constitutes a valid coronavirus-related reason, so it’s best to file on time if you can.

A Word of Caution: Tax Payment Deadlines Remain Unchanged

While the filing deadline has been extended, it’s crucial to understand that the deadline for paying your tax bill has not changed. Here’s what you need to keep in mind:

• The payment deadline remains 31 January 2021.
• Late payment penalties will still apply if you don’t pay your tax on time.
• Interest on unpaid tax will start accruing from 1 February 2021.

What If You Can’t Pay Your Tax Bill on Time?

If you’re struggling to pay your 2019/20 self-assessment tax return bill due to financial difficulties, HMRC offers some options:

1. Time to Pay Arrangement: If you owe less than £30,000, you can set up a payment plan to spread your tax bill over up to 12 months.
2. Appeal Process: If you incur a late payment penalty, you can appeal if you have a reasonable excuse for not paying on time.

The Usual Penalties for Late Filing and Payment

Under normal circumstances, missing the self-assessment deadline can be costly. Here’s a reminder of the usual penalty structure:

• £100 fine for filing even one day late
• Additional £10 daily fines (up to £900) after three months
• Further penalties at six and 12 months

For late payment, penalties are:

• 5% of unpaid tax after 30 days
• Another 5% after six months
• A further 5% after 12 months

Key Takeaways for Your 2019/20 Self-Assessment Tax Return

1. Try to file your return by 31 January 2021 if possible.
2. If you can’t meet this date, ensure you file by 28 February 2021 to avoid penalties.
3. Pay your tax bill by 31 January 2021 to avoid late payment charges.
4. If you’re struggling, explore HMRC’s Time to Pay arrangement.
5. Keep detailed records if coronavirus has impacted your ability to file or pay on time.

While this extension offers some breathing room, it’s always best to sort out your tax affairs as early as possible. The sooner you file your 2019/20 self-assessment tax return, the sooner you can put it behind you and focus on navigating these challenging times.

Remember, if you’re unsure about any aspect of your 2019/20 self-assessment tax return or payment options, it’s always wise to seek advice from a qualified tax professional or contact HMRC directly. They’re there to help, especially during these unprecedented times.

By staying informed and proactive about your tax responsibilities, you can avoid unnecessary stress and financial penalties. Make the most of this 2019/20 self-assessment tax return extension and ensure you are on top of your tax obligations in order to avoid penalties.