In the Chancellor’s Winter Economy Plan that, rather than paying in full at the end of March 2021, businesses will be now able to choose to make 11 equal instalments over 2021-22.
Representatives from the professional accountancy bodies met with HMRC to urge them to move the 31 January 2021 filing deadline. HMRC ultimately said no, but did clarify some important points regarding penalties.
With so many people impacted by the pandemic, it would be reasonable to expect the calls for HMRC to extend the self-assessment filing deadline to be heard. However, it’s now confirmed that the 31 January deadline for 2019/20 returns will remain in place.
One sensible crumb of comfort is that no one will have to pay a penalty if they cannot file on time because of the impact of coronavirus. HMRC will accept personal or business disruption as a “reasonable excuse”, though it will be down to the individual to explain exactly how they have been affected.
The deadline for appealing against late filing or payment penalties has also been extended from the usual thirty days to three months. The best bet is to file on time unless it’s genuinely not possible to do so. Even if you don’t have all the figures you need, use provisional ones then submit an amendment later on. It will save you needing to argue any case for a reasonable excuse at all.
If you have been affected by the constant changes this year and are concerned that you will get your business accounts filed on time, why not call or email us as we are here to help. Get in touch