Originally written by Anna Jordan on Small Business
Self-employed people have an extra month to file their tax return without penalty, but experts warn that you should stick to the original deadline.
Now you have until February 28 to file you return, as HMRC has decided to give businesses ‘breathing space’ amid COVID-19.
HMRC chief executive Jim Harra said: “We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
Why you should file your tax return by January 31 anyway
Warning about the potential outcomes of this news, Nimesh Shah, CEO at Blick Rothenberg, said: “There may be certain claims and elections that need to be submitted by January 31 (usually done via the tax return), and taxpayers need to be clear on the wider implications of filing after January 31 – they may not receive a £100 late filing penalty but there could be other consequences in relation to their tax affairs.”
He added: “I would still urge self-employed individuals to file their return by January 31, as they risk being excluded from future government support. The government has not yet announced the eligibility criteria for the fourth SEISS grant, but I expect that HMRC