Any taxpayers who are yet to submit their completed Self-Assessment tax return which is due before January 31st are being given an extension to file until February 28th. 
HMRC calculates that over 12.2 million customers are expected to complete a tax return for the 2020/21 tax year. Usually a penalty would be put in place and taxpayers would be charged interest if the return and payment in full is not made by January 31st. 
Therefore those who cannot file before January 31st will not receive any penalty if they file before February 28th, and will not receive a late payment penalty if they pay their tax in full or set up a payment arrangement before April 1st 
Deadline extended but not without cost 
Regardless of the deadline extensions, from February 1 companies will still be hit by a 2.75% interest payments on outstanding balances so where possible it is best not to delay payment. 
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know some customers may struggle to meet the Self-Assessment deadline on 31 January which is why we have waived penalties for one month, giving them extra time to meet their obligations. And if anyone is worried about paying their tax bill, they can set up a monthly payment plan online – search ‘pay my Self-Assessment’ on GOV.UK.” 
Remember to include all SEISS payments in your return 
Any self-assessment taxpayer who received COVID-19 support payments will need to include these in their tax return. Payments made under the Self-Employment Income Support Scheme (SEISS) or any other COVID-19 support payments must be included in a self-assessment and correctly recorded as income. 
Which payments must be included? 
The payments that need to be included in the 2020/21 tax return if they were paid before April 5, 2021, according to HMRC are: 
• Self-Employment Income Support Scheme; 
• Coronavirus Job Retention Scheme; 
• other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme. 
However, anyone receiving the £500 one-off payment for working households receiving tax credits does not need to report this payment. 
It is imperative that SEISS grants are included in the tax return as they were paid directly to the individual rather than to a business. Therefore these grants are not included in the accounts of a sole trader or partnership. Instead, they need to be added back in as an adjustment to profits in the self-assessment tax return. 
HMRC has stated that there will be no charge for late filing penalties for paper-based SA700s, SA970s that are received in February, or for SA800s and SA900s if these are filed online before the end of February. 
There are a number of online facilities that HMRC has set up for anyone who needs support in relation to filing their tax returns. You can access live webinars or recordings on GOV.UK, and HMRC has also produced resources to help customers meet their obligations including YouTube videos and Self-Assessment guidance. 
We can help you with these changes 
If you need someone else to take pressure of filing tax returns off you, then please get in touch with us. We make sure all of the relevant information is included in these returns and we work to maximise your allowances, so you only pay the tax due, no more. 
Tagged as: Self assessment, Tax
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