Anyone who uploads their self-assessment tax return up to a month beyond the regular deadline of 31 January will have their fines forgiven.
Fines will not be imposed on anyone who files by February 28th, according to HM Revenue and Customs (HMRC).
The decision has been received with disbelief. Failure to fulfill the deadline usually results in a £100 penalty.
Individuals and tax advisers have been under increased pressure from Covid to make online filings, according to HMRC.
HMRC’s Deputy Chief Executive and Second Permanent Secretary, Angela MacDonald, said: “We understand the constraints that people and companies are feeling this year as a result of COVID-19’s implications.” Our decision to eliminate fines for Self Assessment taxpayers for one month will offer them more opportunities to satisfy their commitments without fear of being penalised.
This is the second year in succession that fines have been imposed as a result of the outbreak.
In addition, anybody who is unable to pay their self-assessment tax by the 31st of January will not be charged a late payment penalty if they pay it in full by 1 April or set up a time to pay arrangement (which distributes the expense over time).
However, starting on February 1st, interest will be charged on any unpaid tax.
Tax advisors and accountancy groups applauded the decision but said it was also intended to relieve strain on HMRC.
For more information Book a Free Consultation!