HMRC figures show that approximately 1.1million taxpayers had still not filed their self-assessment tax return on 2nd March 2021. These taxpayers have already incurred a £100 fine and will face a 5% late-payment penalty, if they do not take action by 1st April. HMRC has issued more than £100million in fines to those taxpayers yet to file their taxes.
Amongst the group of taxpayers who have not filed their 2019/20 tax return, are expected to be freelancers who were hoping to claim the fourth SEISS grant. However, the Chancellor announced in his Budget speech last week, only those who filed their taxes before 3rd March would be eligible for the fourth SEISS grant.
Taxpayers are being urged to file their 2019/20 tax return by the end of March. They must either pay their tax bill in full or arrange for time to pay.
Although the 5% late-payment penalty has been avoided until 1st April, interest charges have been applied since the start of February at an annual rate of 2.6%. If taxpayers do not file their taxes by 30th April, they will incur further late-filing penalties at the rate of £10 per day.