December 18, 2020
HMRC has come up with great news for all the taxpayers as they are not going to charge daily penalties for late filing of 2018-19 tax returns because of coronavirus. Keeping the current situation in mind, HMRC took this decision to support taxpayers in the UK.
HMRC said that 6 and 12-month penalties will be charged as usual for late filing of 2018/19 tax return. The penalties will be calculated at the greater of 5% of the tax due and £300. Furthermore, HMRC has confirmed that it expects returns to be filed on time wherever possible, but it will consider Covid-19 as a reasonable excuse for missing tax return deadlines.
HMRC has clearly instructed every taxpayer that it is must to file the returns on time, if possible. However, in exceptional situation, like if someone is missing to file the returns on time. Then, HMRC will consider coronavirus as the reason for it. HMRC has identified the tough circumstances many taxpayers faced due to the impact of the pandemic, particularly during the period when the daily penalties accrued.
How to Avoid Self-assessment Tax Return Penalty?
You can note down the following steps which will help to avoid the self-assessment penalty:
The taxpayers who are not submitting tax personally, need to keep the track and watch the progress of the filing of their returns. The taxpayers having a reasonable excuse of submitting the late tax returns, HMRC will waive the penalty for them. However, this will be done at the officials’ discretion. If anyone wants to appeal against the penalty, they need to fill the form SA370.
HMRC has clearly stated that they are not going to charge daily penalties for late filing of 2018/19 Self-Assessment tax returns due to the pandemic situation. However, the other penalties will be charged as per the procedure.
Reasonable Excuses for Late Filing
There are some reasonable excuses which HMRC will accept and waive the late charges as per that. The reasons are as follows:
However, it is must that payment should be made to HMRC at the earliest as possible after the excuse is resolved. It is always advisable to file your tax returns in plenty of time before the deadline to avoid the last-minute hassle.
Our tax accountants are particular and cautious in providing self-assessment tax return services to the clients. Your trust is our inspiration and we always give first priority to customer satisfaction. We have dedicated experts who are always there for our clients which will help them in the smooth running of their business. This is the reason UK accountants outsource tax return preparation work to us for saving cost and time.