HMRC responds to ICAS’ call for an automatic waiver of late filing penalties
By Charlotte Barbour, Director of Taxation
21 December 2020
HMRC urges all customers to complete their returns by 31 January 2021 and advises that late filing penalties will not be automatically waived.
In a letter responding to a call from ICAS and other professional bodies to waive late filing penalties, HMRC has said that it does not currently have plans to do so.
The letter states that the request has been carefully considered but that the message regarding SA is simple.
- HMRC encourages customers to complete their returns by 31 January 2020 even if they can’t pay in full because filing their return is key to crystallising their SA liability and being able to get support, if they need it, to pay their tax.
- No-one will have to pay a penalty if they cannot file on time because of the impact of the COVID-19 pandemic.
Why ICAS wrote to HMRC
ICAS wrote to HMRC in November to request that it announces an automatic waiver of late filing penalties for any annual returns filed up to three months late, for returns due between then and 30 June 2021. This is because coronavirus has caused problems for tax agents’ practices and clients’ businesses and compliance with the normal filing deadlines may be difficult to achieve.