Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Loan Charge, what steps the Government plans to take to ensure that people unable to (a) file their tax return, (b) pay tax due and (c) agree a time to pay arrangement by 30 September 2020 as a result of the effect of the covid-19 outbreak do not face any penalty.

The Government and Her Majesty’s Revenue and Customs (HMRC) are acutely aware of the current economic challenges facing taxpayers as a result of the COVID-19 outbreak.

HMRC announced in December 2019 that they would extend the deadline from 31 January 2020 to 30 September 2020, for individuals due to pay the Loan Charge, to submit their 2018/19 Self Assessment returns and pay the tax due or agree a time to pay arrangement.

This deadline has long been established and the extension has given taxpayers an additional eight months to file their returns and decide whether to make an election to spread their loan charge liability over three years. HMRC expect the majority of Loan Charge taxpayers to be able to file a full and accurate 2018/19 Self Assessment return by the 30 September 2020 deadline.

HMRC will take a proportionate and reasonable approach to anyone who is unable to file their tax returns and pay the tax due or agree a time to pay arrangement by the 30 September 2020 deadline as a direct result of COVID-19.