Personal tax 2019/20 online self assessment late filing penalty date deferred to 1 March 2021

Wed 27 Jan 2021

A week before the self-assessment deadline, HM Revenue & Customs has confirmed no £100 late filing penalty will be issued for a late online submissions of the 2019/20 tax return, provided the tax return is submitted by 28 February 2021.

This is a welcome relaxation of the late filing penalty rules and will reduce the significant number of appeals to the £100 penalty that might otherwise have been generated.

Taxpayers need to remember that even though the date by which the £100 late filing penalty applies has been extended, the tax liability for 2019/20 is still due in full by 31 January 2021. Late payment interest will accrue for any tax payments made after 31 January and if the tax is not paid by 2 March, a surcharge based on 5% of the unpaid tax liability may arise.

The crucial point to note is that many claims and elections have a 31 January 2021 deadline, which has not been extended. Therefore missing this claim or election deadline could lead to greater problems than if attention is focussed on meeting the traditional 31 January tax reporting date.

For a further discussion on personal tax self assessment, please get in touch with a member of the Mazars Private Client team.