HMRC warning to self-employed ahead of tax return deadline at midnight on Monday

dailyrecord.co.uk:

HM Revenue and Customs (HMRC) has warned 4 million customers are yet to submit their completed Self Assessment tax return and pay any money owed - with just hours to go before the deadline at 11.59pm tonight on Monday, January 31.

In total, more than 12.2 million customers are expected to file a return for the 2020/21 tax year and HMRC is urging customers who have still to submit their return, pay any outstanding liabilities or set up a payment plan, to do so ahead of the deadline as interest will be applied to all outstanding balances from Tuesday, February 1.

However, anyone unable to file by the January 31 deadline will not receive a late filing penalty if they submit by February 28.Interest will be charged from February 1 on any amounts outstanding, as usual, so it is still better to pay on time if possible.Myrtle Lloyd, HMRC's director general for customer services, said: "We know some customers may struggle to meet the self-assessment deadline on January 31 which is why we have waived penalties for one month, giving them extra time to meet their obligations."And if anyone is worried about paying their tax bill, they can set up a monthly payment plan online - search 'pay my self assessment' on GOV.UK."HMRC says customers must complete a Self Assessment return if they: The 2020/21 tax return covers earnings and payments during the coronavirus pandemic.

Customers will need to declare if they received any grants or payments from the Covid-19 support schemes up to April 5, 2021 on their Self Assessment, as these are taxable.These include:The £500 one-off payment for working households receiving Tax Credits should not be reported in Self Assessment.Even if customers submit their completed tax return now, they do not