According to a recent report from HMRC, nearly two million people missed the self-assessment filing deadline on 31 January.
The latest figures have revealed that 10.7 million people submitted their self-assessment tax return on time, but a record 1.8 million were late. This is almost double the figure from the previous year.
Here is a quick summary of facts from self-assessments in 2021:
If you are one of the late filers, you can still avoid the 5% late payment penalty providing you pay your tax or make a Time to Pay arrangement by 1 April. However, you will have been charged interest from 1 February.
The 31 January deadline hasn’t changed, but due to the impact of COVID-19 HMRC is giving taxpayers more time to pay or set up a payment plan.
If you are not yet able to file your tax return you should at least pay an estimated amount as soon as you can. Doing so will minimise any interest and late payment penalty.
If you are self-employed, you can use the calculator on the Government website to help estimate your bill.
The Time to Pay option allows you to spread the cost of your tax liabilities. You will be able to break it down into 12 monthly instalments until January 2022 and avoid a 5% late payment penalty.
In order to set up a payment plan you must meet the following requirements:
If you do not meet these requirements or need more than 12 months to pay off your bill, you can speak to one of HMRC’s debt advisors who can help you apply for a plan.
Find out more information and get support with your self-assessment tax return.