Self Assessment 2021

Self-Assessment taxpayers will not receive a late filing penalty for their late tax return if they file online by 28‌‌ ‌February 2021, however interest will still be charged from 1 February 2021 on any outstanding liabilities.

This easement is for late filing penalties only. It does not affect any other tax obligations. A return received in February will be treated in the same way as a return filed in February in a ‘normal’ year where there is a reasonable excuse – the penalty will not be charged but the return is treated as late for the purposes of enquiry windows, etc.

Tax still needs to be paid by 31‌‌ ‌January. Interest will be charged from 1‌‌ ‌February on any outstanding liabilities. If any tax remains outstanding on 3‌‌ ‌March, taxpayers will be charged a late payment penalty of 5% of the amount still due.

Taxpayers who cannot afford to pay their tax bill on time can apply online to spread their bill over up to 12 months. To do this, they will need to file their 2019 to 2020 tax return before setting up a time to pay arrangement. Taxpayers can apply for self-serve Time to Pay via GOV.UK.

Taxpayers with bills over £30,000, or who need longer than 12 months to pay their bill, can call HMRC 0300 200 3822 to discuss Time to Pay.

Taxpayers who are required to make payments on account, and know their bill is going to be lower than the previous tax year, for example due to loss of earnings because of COVID-19, can reduce their payments on account.

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