HMRC waiver of late filing and late payment penalties for 2019/20 tax return

Produced by Tolley
  • (Updated for Budget 2021)

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • HMRC waiver of late filing and late payment penalties for 2019/20 tax return
  • Which returns are covered by the late filing penalty waiver?
  • Should the return still be filed by 31 January 2021?
  • Does the tax still have to be paid by 31 January 2021?
  • What if the return is filed later than 28 February 2021?
  • Reasonable excuse
  • Other claims and elections with a 31 January 2021 deadline
  • Special mixed fund rules nomination deadline

HMRC waiver of late filing and late payment penalties for 2019/20 tax return

HMRC has confirmed that it will waive:

  1. late filing penalties for all 2019/20 returns filed before 1 March 2021. This means that as long as the 2019/20 return is filed by 28 February 2021, no £100 late filing penalty will be issued. This was announced on 25 January 2021

  2. late payment penalties for any tax due in relation to the 2019/20 tax year that is either paid before 2 April 2021 or where a payment plan is set-up before 2 April 2021. This means that as long as the tax due is either paid or a time to pay arrangement in place by midnight on 1 April 2021, the first late payment penalty (5% of the tax outstanding) will not be charged. This was announced on 19 February 2021

For details of the penalty rules, see the Self assessment late filing penalties and Interest and penalties on late paid tax under self assessment guidance notes.

Which returns are covered by the late filing penalty waiver?

The late filing penalty waiver applies to all self assessment returns.

For the avoidance of doubt, the Chartered Institute of Taxation (CIOT) has clarified with HMRC that the waiver applies to:

  1. personal tax returns (SA100) filed online

  2. partnership tax returns (SA800) filed online

  3. trust and estate tax returns (SA900) filed online

  4. non-resident company income tax return (SA700) filed on paper

  5. trustees of registered pension schemes tax return (SA970) filed on paper

The non-resident company income tax return and trustees of registered pension schemes tax return cannot be filed online and therefore the paper filing deadline is 31 January 2021. Note that HMRC had already confirmed to the CIOT that the non-resident company income tax return must be submitted with a ‘wet’ signature, despite the potential difficulties in arranging this given that the signatory is likely to be overseas. HMRC will not accept an electronic or scanned copy.

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