SELF-employed workers have until midnight tonight to pay their self-assessment tax bill or they’ll have to pay interest and could face late payment charges.
HMRC last week announced it has scrapped the £100 late filing penalties for tax returns but it still expects you to pay your bill today.
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Taxpayers should still meet the January 31 deadline to avoid being hit with extra charges
The deadline for filing the return is tonight, but you can avoid the £100 penalty as long as your return is submitted online before February 28 2021.
If you file at the bank or by post after the deadline, you will still be subject to the fine.
But from tomorrow February 1, you’ll be charged interest on any tax your owe at a rate of 2.6%.
And if you still haven’t paid by February 28 deadline you’ll also get another fine, unless you set up a payment plan plan before March 3.
If you’ve not filed yet, HMRC says you can pay an estimated amount to avoid the interest and any late payment fees.
The deadline for filing was extended to help those struggling due to last-minute issues caused by the latest coronavirus lockdown.
Any outstanding money still owed after you file should be paid as soon as possible to avoid extra interest and the late payment fee.
HMRC said removing the penalty is aimed at “easing pressure” on taxpayers.
But a spokesperson added: “The self assessment deadline has not changed so customers’ other obligations remain the same, including to pay their bill by January 31 and there are significantly enhanced Time to Pay (TTP) arrangements to help with this.”
HMRC has already said it will accept Covid disruption as a reasonable excuse for people missing the deadline, although they’ll still be hit with a fine.
Customers will then have to appeal the penalty that’s been issued by proving they have been negatively impacted by coronavirus, which has caused a delay.
Self-assessment customers face a penalty of £100 if their tax return is up to three months late.
Further fines of £10 a day are applied after three months, up to a maximum of £900.
For payments late by six months, you’ll be fined 5% of the tax you owe or £300, whichever is greater.
You can calculate how much your fine will be on the Gov.uk.
More than 8.9million customers have already filed their tax return.
Your earnings are used to determine the amount of tax you owe for 2019/20 and the amount of any payments on account for 2020/21.
Unfortunately, you can’t delay filling your self-assessment tax return but you can appeal a penalty.
Last year, HMRC hit hundreds of taxpayers with £100 late fines despite filing on time.
While in February 2020, a woman got a £1,316 HMRC tax fine refunded after HOAR stepped in.
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