HMRC has bowed to pressure from professional bodies and waived late filing penalties on self-assessment tax returns as long as the taxpayer can file their return online by 28 February.

With days left before 31 January, HMRC’s chief executive Jim Harra effectively extended the tax return deadline after conceding that HMRC will not charge late filing penalties for late online tax returns submitted by 28 February. 

Harra said this move will “give [taxpayers] the breathing space they need to complete and file their returns, without worrying about receiving a penalty”.

“We want to encourage as many people as possible to file their return on time, so we can calculate their tax bill and help them if they can’t pay it straight away. But we recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by 31 January,” said HMRC’s Harra. 

Although HMRC has progressively backed down on tax return late filing penalties over the past month, it is still pushing anyone who hasn’t filed yet to still do so by 31 January. The relaxation of late filing penalties does not affect the payment deadline, which means interest will be charged from 1 February on any outstanding liabilities if taxpayers don’t pay their bills by 31 January.

If you are planning to claiming the fourth SEISS grant - details of which still haven’t been announced – your claim may be delayed until your 2019-20 tax return has been filed.

Noel Guilford