Self-Assessment Tax Return Penalties

Submitting your 2019 to 2020 Tax Return

The normal self-Assessment payment deadline is 31st January and usually after this date, interest would be charged on any outstanding amounts. Although the deadline has not changed, HMRC is giving taxpayers more time to pay or set up a payment plan because of COVID-19.

Prior to COVID-19, if you needed to send a tax return, you would have received a penalty if you missed the deadline for submissions or paying the bill. The late filing penalty of £100 for tax returns that are up to 3 months late and if the payment was later than 3 months, then the penalty would have increased and you would have been charged interest on late payments.

However, due to COVID-19, if you were unable to submit your online tax return by 31st January 2021, HMRC advised that if you submit your return by 28th February 2021 you won't get a late penalty.

Your tax bill should still have been paid by 31st January however due to the COVID-19 disruption interest will be charged on late payments from 1st February 2021. If you haven't paid in full by 2nd March 2021, you will be liable for an additional penalty.

You can estimate your penalty for Self-Assessment Tax Returns and late payments. It is possible to appeal against a penalty if you have a reasonable excuse.

If you are part of a partnership, all partners can be charged this penalty if the tax return is late.

What to do if you can't pay

If you pay your tax or make a Time To Pay arrangement by 1st April 2021, you will not be charged the initial 5% late payment penalty.

To avoid a late payment penalty, payment plans or payments in full must be in place by midnight on 1 April 2021. These payment plans will allow you to pay off your tax liabilities in monthly payments until January 2022. Find out more or set up a payment plan on the GOV.UK website.

If you are worried about paying your tax bill, contact HMRC for help and support on 0300 200 3822.