Personal tax returns for the 2019-2020 tax year are due by 31 January 2021.
HMRC announced yesterday that no penalties will be charged on those who are late submitting, as long as HMRC receive their tax return by 28 February 2021.
This will be a huge relief to those who have been struggling with the impact of both lockdown and Covid 19 on their businesses, personal lives.
But there is an important catch – you still need to pay any income tax that you owe by 31 January 2021 to avoid late payment interest being charged from 1 February.
Remember that you are allowed to use provisional figures in preparing your return. To do this, tick Box 20 on the return and use the white space to tell HMRC why you are using provisional figures and when you will resubmit using actual figures. You then have to resubmit a return based on actual figures by 31 January 2022, at the latest to avoid penalties and a tax enquiry.
If you are struggling to pay your income tax, then don’t delay. File your tax return and get in touch with HMRC as soon as possible . They should be able to put together a payment plan where you pay the tax due over 12 instalments.