HM Revenue and Customs (HMRC) has issued a final warning to customers who have still to file their Self Assessment tax return and avoid having to pay a penalty fine.
The deadline for submitting tax returns was January 31, however, HMRC extended the deadline to 11.59pm on Monday, February 28 to give people affected by the coronavirus pandemic additional time to complete their 2020/21 tax return.
Some 10.69 million customers have already filed a 2020/21 tax return, however, those still to do so face an initial late filing penalty of £100 if their tax return is up to three months late and they could also face possible further costs, depending on how late they file.
Self Assessment taxpayers have until April 1 to pay their outstanding tax bill or set up a "time to pay" arrangement to avoid receiving a late payment penalty.
Interest has been applied to all outstanding balances since February 1.
Myrtle Lloyd, HMRC's director general for customer services, said: "There is [less than] one week left to complete your tax return if you haven't done so already.”
Who needs to complete a Self Assessment tax return?
HMRC says customers must complete a Self Assessment return if they:
- earned more than £2,500 from renting out property
- received, or their partner has received, Child Benefit and either of them had an annual income of more than £50,000
- received more than £2,500 in other untaxed income, for example from tips or commission
- are a self-employed sole trader whose annual turnover is more than £1,000
- are an employee claiming expenses in excess of £2,500
- have an annual income of more than £100,000
- have earned income from abroad that they need to pay tax on
How to pay your tax bill
Various payment options include:
- paying through a customers’ tax code (PAYE customers only)
- Payment on Account
- setting up an online monthly payment plan (self-serve Time to Pay)
- paying by debit or corporate credit card
- paying at a bank or building society
Customers should contact HMRC if they have concerns about paying their tax bill.
Visit GOV.UK for a full list of payment options and the eligibility criteria here.
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