No change to HMRC’s stance on self-assessment late filing penalties

HMRC has reiterated its refusal to waive penalties for late filed self-assessment tax returns - due on 31 January. This comes after further representations from the professional bodies in light of the lockdown restrictions and the increase in coronavirus cases.

In a letter dated 18 January HMRC chief executive Jim Harra said: ‘We will continue to encourage timely filing … Any departure from this simple message increases the risk that taxpayers will miss both filing and payment deadlines unnecessarily or miss out on the simple arrangements we have put in place for securing time to pay.’ He added that ‘filing rates are still holding up well’.

Acknowledging that some taxpayers and agents ‘will struggle to meet the deadline’ Mr Harra said the department was considering how to ease the situation. This included options that would ‘significantly simplify the handling of reasonable excuse appeals’ such...