Nearly one million taxpayers have been fined after failing to submit their tax return on or before the 28 February Self Assessment deadline, it has been revealed.
The report comes after the automatic £100 late submission penalty was waived for one month in response to the coronavirus pandemic.
According to HM Revenue & Customs (HMRC), 12.2 million taxpayers were expected to file a return for the 2020 to 2021 tax year.
But just 11.3 million tax returns were submitted by 28 February, meaning approximately 900,000 have been handed a penalty.
Those yet to pay, meanwhile, have until 01 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty. Late payment interest, however, will continue to accrue as usual from 01 February – incentivising taxpayers to pay as soon as possible.
Commenting on the figures, Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We understand some customers might be worrying about paying their Self Assessment bill this year, and we want to support them.”
Lucy Frazer, Financial Secretary to the Treasury, added: “Today’s stats show how vital the extra month was in supporting the cash flows of more than a million self-employed people and businesses across the UK, helping to ensure their survival as we recover from the pandemic.”
Do I need to submit a tax return?
You must send a tax return if you were self-employed and earned more than £1,000 or were a partner in a business partnership in the last tax year (06 April 2020 to 05 April 2021).
If you have any other untaxed income, such as certain Covid-19 grants or support payments, money from renting out a property, tips and commission, income from savings, investments and dividends, or foreign income, you may also need to send a tax return.
For help and advice with related matters, please get in touch with our team today.