The deadline for submitting 2020/21 self-assessment tax returns was October 31, 2021 for paper returns and January 31, 2022 for internet forms.
If you have been required to submit a tax return for 2020/21 but have not yet completed it, you will be fined an automatic, first penalty of £100 if you miss the deadline. The fines begin to climb after a three-month wait.
However, HMRC has said that if you submitted your tax return online after the deadline of January 31st, you will not be penalized provided you file by February 28th. This is to assist people who have been affected by the coronavirus.
What should I do if my tax return is late?
To get your tax affairs in order, you must either:
1. Request that HM Revenue and Customs (HMRC) remove the tax return if you believe it is unnecessary.
If you feel you are not obligated to file a tax return, call HMRC at 0300 200 3310 and request that the tax return be removed. If HMRC agrees, you will no longer be required to submit a return, and any penalties imposed for missing the deadline will be waived.
Make a note of who you talked with, when you spoke with them, and what the anticipated result is – for example, when will you get a decision from them.
HMRC is unlikely to withdraw a return if you were self-employed at any point throughout the tax year – even if just for a brief period of time.
2. Submit your tax return as soon as possible.
File your tax return as soon as possible since penalties increase the longer you wait beyond the deadline. It also makes sense to submit your return online, since the deadline for doing so is January 31st.
We would be pleased to prepare your tax return for you; please contact us to discuss this further.
Excuses that are reasonable
If you submit your 2020/21 tax return late, you will be penalized, subject to the extension until February 29th.
You may appeal the penalty if you have a legitimate justification for the delay in submitting your return.
A reasonable excuse is anything that prevented you from fulfilling a tax obligation that you made reasonable steps to satisfy, such as:
you had an unforeseen hospital stay that prohibited you from dealing with your tax affairs your spouse or another close relative died just before the tax return or payment deadline you had an unexpected hospital stay that prevented you from dealing with your tax matters
you were afflicted with a severe or life-threatening disease
On its website, HMRC gives a list of frequent instances of Reasonable Excuses, which has recently been amended to include:
“If you are infected with coronavirus (COVID-19), HMRC will accept coronavirus as a legitimate cause for failing to meet some tax responsibilities” (such as payments or filing dates).
“In your appeal, explain how the coronavirus impacted you. You must still return or pay as soon as possible.”
Payments that are late
Any tax obligation for the fiscal year 2020/21 was payable by January 31, 2022. Late payment penalties will begin to accumulate if it is not paid within 30 days of the deadline. However, if you fill out the appropriate component of your Reasonable Excuse claim, they may also be compensated.
There is an extension for 2020/21 until 1st April 2022, after which late payment penalties will apply.
Interest is paid on the tax for the full while it is due, and this cannot be avoided.
What’s the most improbable reason?
The following are not frequently recognized as plausible explanations:
You depended on someone else to submit your return, and they failed to do so. Your check bounced or payment failed due to a lack of funds.
You found the HMRC web system to be too difficult to use.
You did not get a reminder from HMRC.