HMRC warning: Self Assessment deadline just one week away – Britons urged to act fast | Personal Finance | Finance

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HMRC, or HM Revenue and Customs, is liable for accumulating Income Tax, amongst different duties, and one of the methods it does so is thru a Self Assessment tax return. Eligible Britons have been required to submit their tax return by the January 31, 2021 deadline, nonetheless, the Revenue did present some reprieve on the time due to COVID-19. It said late submitting penalties could be waived if an individual struggled to meet the January deadline this time round.

However, whereas this did present a sure degree of aid, a brand new deadline is just across the nook – and Britons will want to act fast.

In order to keep away from a late submitting penalty, HMRC has mentioned individuals should file on-line by February 28, which is now just a week away.

From February 1, curiosity has been charged on any excellent liabilities an individual could have.

However, a failure to file by February 28 will imply Britons have to take care of extra expenses they might have in any other case prevented. 

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People who’re unable to pay a tax invoice on time are ready to apply to unfold their invoice over up to a 12 month interval.

However, these people can be required to file their 2019/21 tax return earlier than establishing this so-known as “Time to Pay” association. 

Mr Parkes, although, supplied additional perception into the implications of late submitting penalties on an individual’s funds.

He added: “Failure to meet the extended deadline will only result in further financial pressure after a tough year of trading.

“Based on a £4,000 tax bill, that liability will rise by a further £308 within days of the deadline passing if someone fails to file their tax return and pay their tax bill.

“This includes £300 in penalties and interest accrued since the January 31 deadline at a rate of 2.8 percent.

“With people already struggling financially, this would be between an 11 percent to 15 percent increase on the average living expense for a family of four per month.”

People are due to this fact being urged to take motion this week to guarantee they don’t fall foul of HMRC’s penalties.

Mr Parkes concluded by encouraging Britons not to “bury their head in the sand” and as a substitute act as quickly as potential.

Leaving ample time to full a Self Assessment tax return means people are much less doubtless to make errors.

For those that are uncertain concerning the course of, in search of recommendation or utilizing tax software program will simplify the method.

People can be ready to pay their tax invoice on-line, by way of their financial institution, or by put up and if they’re unsure, steerage is out there on the Government’s web site.

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