The HMRC have finally bowed to pressure and extended the tax self assessment deadline by a month from January 31st to February 28th. There were valid concerns that, due to the Covid pandemic, many businesses were not yet in a position to file their tax returns, so this at least gives them a little breathing space.
3 Million People Yet To File Tax Returns
It is reported that there are over 3 million people who have yet to file their tax returns, with nearly 9 million people filing theirs so far, so they would have faced a £100 late filing penalty if they had not filed it before the deadline at the end of this month. Now they have more chance to get their returns together and file before the new deadline.
There is one little caveat to this news though, the HMRC state that taxpayers were still obliged to pay any tax that they owe for the year by the 31st January and that interest would be applied to any outstanding balance from 1st February, so it still pays to file your tax return before the usual date.
Giving People Breathing Space To File Tax Returns
Jim Harra, the HMRC’s chief executive, is quoted in an article in The Guardian as saying:
“Not charging late filing penalties for late online tax returns submitted in February will give [people] the breathing space they need to complete and file their returns, without worrying about receiving a penalty. We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
And Dawn Register, the head of tax dispute resolution at the accountant BDO, is quoted in the same article, saying:
“This is a very welcome move … HMRC clearly understands that those severely impacted by Covid-19 should not face receiving a ‘brown envelope’ in February as it would result in unnecessary angst. This additional time will provide taxpayers and advisers with crucial latitude, which is needed in these unprecedented times.”
Unprecedented & Challenging Times
Unprecedented times are certainly two words that describe the current economic, and social, climate very well indeed. Never has our business faced such challenges before, along with the rest of the business community.
As a business owner you certainly can`t do everything all by yourself which means it makes perfect sense to hire an accountant to sort and file your tax returns for you. Which is where we come in. We can file your tax returns as well as give you expert advice, which may save you a lot of money, both in the short term and the long term. Give us a call at our Armagh offices on 028 3752 2909.