Self-assessment tax payers have just three days left to avoid £100 late fine
SELF-assessment tax payers have until midnight on Sunday to file their return and avoid a £100 fine.
The deadline to submit tax returns for 2019/20 was January 31 but HMRC waived the late payment charge so long as they are submitted by February 28.
Delaying the fines was aimed at helping those who were struggling to meet the deadline due to the impact of the third national lockdown.
But tax payers will still have been charged interest worth 2.6% of the outstanding amount every day until the payment is made from February 1.
According to HMRC, nearly two million people missed the end of January deadline this year.
Tax returns will need to be filed online now though as those returned by post or via the bank will still incur the fee.
If you've already signed up for self-assessment, you can find your UTR on relevant letters and emails from HMRC.
HMRC accepts your payment on the date you make it, not the date it reaches its account - including on weekends.
If you need to change your tax return after you've filed it, you can do so within 12 months of the original deadline or you can write to HMRC for any changes after that.
Filling in your tax return can seem daunting, but with our step-by-step guide you'll have it sorted in no time.
Late payments submitted after February 28 deadline will be fined as normal.
HMRC has already said it will accept Covid disruption as a reasonable excuse for people missing the deadline, although they'll still be hit with a fine.
Customers will then have to appeal the penalty that's been issued by proving they have been negatively impacted by coronavirus, which has caused a delay in making the deadline.
How much could I be fined if I hand it in late?
Normally, a 5% late payment penalty is charged on any unpaid tax that is still outstanding after 30 days.
After this, you get charged another 5% of what you owe at six months, and another 5% again at 12 months.
But because of the coronavirus pandemic, HMRC has agreed to waive the 5% payment penalty charged on unpaid tax that is still outstanding on 3 March 2021, as long as you pay or set up payment plan by 11.59pm on April 1.
A 5% late payment penalty fee will still be charged after 1 April.
At six months, you'll be fined 5% of the tax you owe or £300, whichever is greater.
What if I need more time?
HMRC has a which breaks down what you owe into monthly instalments to make it more affordable.
Due to the financial impact of the pandemic, it’s been made available to more people who are struggling to pay their tax bills this year.
However, you will still be charged 2.6% interest on any tax that’s outstanding after 31 January.
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If you can’t use the online service, call the self-assessment payment helpline on 0300 200 3822.
They're open Monday to Friday, 8am to 6pm (closed on bank holidays).