Self Employed face fines from the HMRC

On Saturday the Saturday Telegraph reported that more than 1 million people are planning to put off filing their Tax Returns.

Tax Returns must be filed by 31st January 2021 however it is thought from a recent survey, that up to 30% indicted that the Pandemic had made them more likely to put off dealing with it, with many indicating Stress as a cause.

There is an automatic penalty of £100 for not filing by the deadline and then failure to pay the fine potentially triggers further penalties.

Other likely effects of not completing the Return, is not realising the magnitude of what they might owe, due to Covid and any deferred tax payments agreed from July 2020. Combined with reduced incomes could mean unaffordable debts, particularly if fines are added.

Any deferral from the Tax payment originally due on 31st July 2020, would then be due together with the 2nd payment at 31st January 2021. For payments due from 31st Jan 2021, there are additional penalties of 5% of the Tax Bill unpaid after 30 days, then again after 6 months and again after 12 months.

If you are unlikely to be able to afford your Tax payments, it is critical that you contact HM Revenue and Customs to agree a repayment plan if possible, before 31st January 2021.