More than 10.7m taxpayers filed their tax returns by 31 January. Yet nearly 15% didn’t make the deadline. This is almost twice the amount reported last year.
On 1st February 2021, the day after the 2019/20 self assessment deadline, HMRC had received 10,743,387 returns (which includes expected returns, unsolicited returns and late registrations).
1.8m were outstanding.
The majority of the tax returns (95.6%) were submitted online.
Late filers up on last year
Although the filing rates were on track at the start of January, the remaining tax returns are up on the 958,296 late filers this time last year. After HMRC’s decision to waive late filing penalty, the 1,790,368 taxpayers who still need to file will not incur an immediate £100 fine as long as they submit their tax return online by 28 February.
HMRC will also not charge late filing penalties for SA700s and SA970s received in February, which can only be filed by paper; and SA800s and SA900s.
While these late filers have some breathing space on the penalty, interest will still be chargeable on any tax not paid by the 31 January due date. HMRC is encouraging these taxpayers to pay an estimated amount as soon as possible to minimise any interest.
A 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, before 3rd March 2021.
HMRC will not send anyone a late filing penalty as long as they meet the 28 February due date.
Have you filed this year’s self assessment return? Have you started planning for next year? Get in touch to see how we can help.