HMRC is urging the 1.8 million people who did not pay their Self Assessment tax bill on 31 January to do so as soon as possible as they now face incurring interest on their outstanding balance.
According to the tax authority, those who missed their self assessment deadline will not be charged a late filing penalty if they submit their return online by 28 February.
It has been reported that 10.7 million tax returns have been submitted on time – previously HMRC introduced a one month extension on the deadline due to the pandemic.
Customers have now been asked to pay any outstanding balance, or arrange a payment plan, before 3 March 2021 to “avoid a 5% late payment penalty”.
Karl Khan, interim director general for customer services, HMRC said:”Thank you to the 10.7 million customers who have sent in their tax returns.
“We won’t send anyone a late filing penalty if they complete their tax return by 28 February. We know that many individuals and small businesses are finding it harder to pay this year, due to the pandemic.”
He added: “Anyone who can’t afford to pay their tax bill in full can set up a payment plan, once they’ve filed their return, to spread their tax bill into monthly instalments.”