HMRC gives last-minute tax deadline extension

Taxman gives reprieve until 28 February, but we explain why early filing is wise.

Britons have been given a last-minute reprieve by HM Revenue & Customs (HMRC) after it extended the self-assessment tax return deadline with just a week to go.

Anyone completing a tax return, such as the self-employed or those reporting untaxed earnings such as investment or rental income, now has until 28 February to file online with HMRC. The previous deadline was the end of January.

Previously, HMRC would charge an automatic £100 late filing penalty if a return was late.

There won’t be a charge if the return for the 2019-20 tax year is late, but any tax owed still needs to be paid by 31 January.

Interest will be charged from 1 February on any outstanding liabilities.

Taxpayers who cannot afford to pay their tax bill on time can apply online to spread their bill over up to 12 months, but they will need to file their tax return first.

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Jim Harra, chief executive of HMRC, says: “We recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January.

“Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.”

Kevin Sefton, chief executive of tax app Untied, described it as a “victory for common sense”.

He adds: “It will ease the burden on self-employed workers, many of whom have had one of the most challenging years of their lives.”

Nimesh Shah, chief executive of tax and advisory firm Blick Rothenberg, says the decision should have been made earlier. He suggests self-employed people should file sooner rather than later if they want to access government support.

He adds: “The government has not yet announced the eligibility criteria for the fourth self-employed income support grant, but I expect that HMRC will want the 2019-20 tax return data to make a valid claim.”

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