On the 25th January 2021, HMRC announced that those who complete their 2019/20 Self-assessment return before the 28th of February will not be fined the usual £100, thereby extending the January 31st deadline. However, any tax owing and not paid to HMRC by the 1st February, will still incur interest at 2.6%.

Penalties on tax owing will begin as normal on the 2nd March.

What this means is that HMRC's extension of the deadline to February 28th is only relevant to those who owe little or no tax, as interest of 2.6% will still be charged on taxes from 2019/20, remaining unpaid on the 1st of February.

There is also confusion as to whether missing submitting, and paying tax owing, by the January 31st deadline, could affect eligibility for the 4th payment of SEISS.

My best advice is to get your Self-assessment return completed before 31st January to avoid any additional costs. In order to help you, we've put together this Last Minute Tax Return Guide.

For more information on fines and charges for a late return, we have a useful Guide on Self-Assessment fines and charges.

The easiest way to calculate and submit your 19/20 tax return

If you’re looking for an easy way to calculate and submit your tax return, then we are big fans of GoSimpleTax.

Why do we like SimpleTax so much?

• It’s easy to use
• Jargon-free – we hate techno-babble
• It actively identifies tax savings – missed tax-free allowances
• It has all the forms you’ll need
• You only need your tax reference code to submit your return – there’s no need to register with HMRC

Our team have used this software for their own personal Self-Assessment return. Anyone can use the software free for 14 days. If you find it easy to use and want to submit your return, then only at that point will you need to provide any payment details. For most people the cost is £46. Why not give it a go?

How does using GoSimple Tax support Listentotaxman?

We earn a small commision for any of our users who sign up to GoSimpleTax's software. Their software is a product we have no problem in recommending as it makes doing your taxes easier and more affordable. This DIY approach to taxation is the reason we started Listentotaxman all those years ago.

Given the cost of an accountant, and the amount of time GoSimpleTax can save you, we think this is great value for money.