Around 1.8 million taxpayers failed to submit their 2019/20 Self Assessment tax return before this year’s 31 January deadline, new figures have revealed.
The report comes after HM Revenue & Customs (HMRC) announced that taxpayers would not be charged a late filing penalty provided they submit their return online by 28 February.
But taxpayers will still be charged interest at a rate of 2.6 per cent on any unpaid tax from 01 February, meaning tax should be settled as soon as possible.
The penalty for non-submission starts at £100 – even if there is no tax to pay – increasing £10 a day after three months. A further penalty of five per cent of the tax owed or £300 (whichever is greater) is applied after six months and again after 12 months.
Taxpayers who cannot settle their tax liabilities in full can arrange to pay in monthly instalments under the Time to Pay scheme. The threshold was increased from £10,000 to £30,000 this year, meaning more people than ever can benefit from the scheme.
Commenting on the report, Karl Khan, HMRC’s Interim Director General for Customer Services, said: “Thank you to the 10.7 million customers who have sent in their tax returns.
“We won’t send anyone a late filing penalty if they complete their tax return by 28 February.
“We know that many individuals and small businesses are finding it harder to pay this year, due to the pandemic. Anyone who can’t afford to pay their tax bill in full can set up a payment plan, once they’ve filed their return, to spread their tax bill into monthly instalments.”
For help and advice on related matters, please get in touch with our expert personal tax team today.