HMRC has announced that Self Assessment customers will not receive a penalty for their late online tax return if they file by 28 February.
Taxpayers were still obliged to pay their bill by 31 January. Interest will be charged from 1 February on any outstanding liabilities. HMRC won’t charge the initial 5% late payment penalty as long as tax is paid, or a time to pay arrangement entered by 1 April. Customers can pay online, or via their bank, or by post before they file.
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 2019 to 2020 tax return before setting up a time to pay arrangement, so HMRC is encouraging everyone to do this as soon as possible.