HMRC has extended its self-assessment deadline to February 28, but taxes are due before January 31. The new extension to increase your taxes is a welcome relief for many. However, those who do not pay their taxes by the end of January are still liable for the fees.
Late filing will typically result in a fine of at least £ 100 (US $ 137). However, the HMRC has announced that it will accept the effects of the coronavirus pandemic as a reasonable excuse and waive these fines for another month.
The CEO and the Financial Advisors at Pro Tax Accountant, Mr. Adil Akhtar, said: “HMRC's announcement yesterday is welcome, but it will continue to pose major challenges for taxpayers. “If a tax return has not been submitted on time, the exact amount of tax owed (to be paid later) may be unknown, though there are positive singles being given by HMRC in this regard. However, HMRC still requires us that the taxes owed should be paid by January 31st.
“Questions are undoubtedly being asked why the payment date could not be extended to February 28th. The government is focusing budget on tax revenue as of January 31. At a time when spending is higher than ever, changing this window is likely to have created significant challenges."
For those who will benefit from the renewal but still have to pay tax by January 31st, one option is to make a deposit with HMRC near the amount of tax due. If you turn out to have paid too much, the difference can be claimed, and if you have paid too little the interest is significantly less than if you hadn't paid at all.
Some may not be able to make such payment at this time. In this case, a payment schedule must be agreed with HMRC no later than 60 days after the due date of the debt. Otherwise, an additional 5% applies to.%. If a payment schedule has been agreed, interest will be charged on the amount.
The Best Tips for Your Taxes
Keep all the information you need in one place. Whether it's your spreadsheet, UTR number, P60 or P45 forms, or the National Insurance Number, it's so much easier to collect your taxes when you don't have to spend half the time looking at drawers and Browse filing cabinets for this bill.
Don't leave it at the last minute. Paying your taxes can be stressful enough without feeling rushed or pressured. You will be thankful for doing this. Get help when you need it. If you need help check out the Gov.uk website or the Tax Aid website, or if you can afford it, let an accountant go through things and do the paperwork for you. Don't forget your expenses. If you are self-employed, you can claim expenses like travel expenses, office supplies, energy bills, and other things that you need to be able to work.
HMRC May Waive Some Late Tax Payment Fines
HMRC has announced that it will waive penalties for filing certain late tax returns if the deadline is missed for coronavirus-related reasons.
Usually, a late deposit will result in a penalty of at least £ 100 ($ 136). However, if a tax-payer is unable to submit tax returns on time due to the effects of COVID-19, HMRC will accept the late returns if he has a reasonable excuse and waives the penalties, provided he is able to submit the request as soon as possible afterwards.
There is support for those who may find it difficult to pay with clients who can reduce their payment debt to £ 30,000 over a 12-month period. The tax office made this decision realizing that many taxpayers may have difficulty filing self-assessment due to the effects of COVID-19.
It is also exploring possible changes that could be made to make appeals easier and faster for everyone involved, and the appeal period has already been extended to three months. Moving would mean that setbacks like pressure at school could be seen as reasons for missing a deadline.