HMRC has confirmed that it will automatically waive late-filing penalties for self-assessment (SA) tax returns due on 31 January 2021 for one month. This means no penalties will be issued for returns filed online up to 28 February 2021.

The waiver of late-filing penalties does not change the need to pay any tax due by 31 January. If payment is not received by 1 February 2021, then interest will be added to any liability from that date. A late payment penalty of 5% will also apply if the tax is not paid by 2 March or a time-to-pay agreement has not been put in place.

There are also concerns that late filing may have wider implications for self-employed individuals considering making a Self-employed Income Support Scheme (SEISS) claim from 1 February. The government is yet to confirm eligibility criteria for the fourth grant period, which is expected to run from 1 February to 30 April. However, the new criteria might include a cut-off date for filing 2019/20 tax returns to enable grant calculations to be made based upon the latest data submitted.