HMRC collects data for Self Assessment returns in compliance with the UK General Data Protection Regulation (UK GDPR). These rules require that any personal data collected must be adequate, relevant, and limited to what is necessary for the purposes for which it is processed.

National identity is not required for determining an individual’s residency status for tax purposes, and therefore is not collected as part of the Self Assessment process. This applies to the taxpayer residency status section as well as the return more broadly.

HMRC collects data for Self Assessment returns in compliance with General Data Protection Regulation (GDPR). These rules ensure that data we collect is adequate, relevant, and limited to what is necessary. National identity is not needed for processing Self Assessment.

HMRC’s “Self Service Time to Pay” online payment plan (SSTTP) enables Self-Assessment taxpayers to set up an instalment plan to pay their Self-Assessment liabilities, without the need to contact HMRC directly.

This service was previously available to those Self-Assessment taxpayers with liabilities of up to £10,000. On 24 September 2020 the Chancellor announced that the £10,000 threshold was being increased to £30,000 to increase support for businesses and individuals. Taxpayers using this service can have up to 12 monthly instalments to pay their Self-Assessment tax liabilities.

In the period 1 November to 30 November 2019, 109 SSTTP arrangements were set up, to pay Self-Assessment liabilities totalling £295,092. In the period 1 November to 30 November 2020, 5,248 SSTTP arrangements were set up, to pay Self-Assessment liabilities totalling £12,291,633.

There are no plans to move the Self-Assessment (SA) filing date from 31 January 2021. However, the Government recognises that some taxpayers may have difficulty submitting their SA return due to the impact of COVID-19 on their personal circumstances.

HMRC do not charge penalties for failure to submit a return on time where taxpayers have a reasonable excuse. HMRC’s current guidance explains that they will accept the impact of COVID-19 as a reasonable excuse for submitting a return late, provided that taxpayers explain how they were affected and submit the return as soon as they can. More information is available in the HMRC online guidance covering the reasonable excuse provisions.

The Government urges taxpayers to submit returns on time where possible. Where taxpayers or their agents are struggling to get the information they need to submit a return by 31 January, they can complete it using provisional figures and give HMRC the actual figures as soon as they can.

Taxpayers who are unable to pay all of their SA tax due on 31 January can access HMRC’s enhanced Time to Pay (TTP) arrangements. HMRC have recently enhanced their self-serve, online TTP service.

This now allows liabilities of up to £30,000 – increased from £10,000 - to be paid in up to 12 instalments without having to contact HMRC beforehand.

It is not possible to answer this question in detail, without further information about the specific plan referred to.

The Honourable Member may wish to note that for the forthcoming Self-Assessment deadline HMRC are developing an integrated external campaign which includes direct communications, social media, press and stakeholder management. HMRC would like taxpayers to complete and file their tax return early, so they can plan and budget and ultimately pay the tax they owe. HMRC’s communications will include messages to explain the support available to taxpayers who have been affected financially by COVID-19 and who cannot pay in full by the deadline.

The 2015-16 Self-Assessment (SA) tax return typically has an online filing deadline of 31 January 2017, the 2016-17 Self-Assessment (SA) tax return typically has an online filing deadline of 31 January 2018 and correspondingly, the 2017-18 Self-Assessment tax return typically has an online filing deadline of 31 January 2019.

The value of payments attributed to late filing penalties for people filing late and after the deadline of 31 January in (a) 2017, (b) 2018 and (c) 2019 is as follows:

Note: Figures have been rounded to the nearest thousand. These figures have been produced using an extract of the data provided for analytical purposes, and there may be small differences between this and other HMRC systems including the live SA system (CESA).

This analysis is based on penalties created and payments received to February 2020. The 2017-18, 2016-17 and 2015-16 figures cover a period of 1, 2 and 3 years’ penalty payments respectively. More penalties will be issued and paid in relation to all these years but further payments to recent years will be relatively higher, so there will be greater changes to recent years. It is not possible to make meaningful comparisons between different years’ figures.

The above figures include both full and part-payments for the initial £100 late filing penalty, daily penalties, 6 month and 12 month late filing penalties. Late payment penalties have not been included.

These late filing penalties relate to individuals who filed online after 31 January after the end of the corresponding tax year and at least 3 months after they were issued with a notice to file; individuals who have missed the 31 January deadline and who have not yet filed their SA return for the corresponding tax year; and, individuals who did not need to file an SA return for that tax year but received late filing penalties due to late notification.

The figures may include some penalty payments relating to Trust returns as they receive the same penalty code. Penalty payments relating to partnership returns are not included.

Penalties are not used as a means of generating revenue. HMRC want taxpayers to comply with their obligations.

HMRC charge penalties to encourage taxpayers to meet their tax obligations and to act as a sanction for those who do not, so the majority who do pay correctly and on time are not disadvantaged.

Not all taxpayers who fail to submit their return on time will have to pay a penalty. A penalty will not be payable if a taxpayer had a reasonable excuse for not filing their return on time or if they no longer need to file a return.

HMRC will not know if a taxpayer has a reasonable excuse or no longer need to file a return until the taxpayer tells HMRC.

The 2016-17 Self-Assessment (SA) tax return typically has an online filing deadline of 31 January 2018, and correspondingly, the 2017-18 Self-Assessment tax return typically has an online filing deadline of 31 January 2019.

The value of payments attributed to late filing penalties for people filing late and after 31 January for these two tax years has been provided below.

Note: Figures have been rounded to the nearest thousand. These figures have been produced using an extract of the data provided for analytical purposes, and there may be small differences between this and the live SA system.

This analysis is based on penalties created and payments received to 3 January 2020. The 2017-18 figures cover a period of 11 months. The 2016-17 figures cover a period of 23 months. HMRC anticipate that more penalties will be issued and paid in relation to 2017-18, so it is not possible to make meaningful comparisons between the two sets of figures.

The above figures include both full and part-payments for the initial £100 late filing penalty, daily penalties, 6 month and 12 month late filing penalties. Late payment penalties have not been included.

These late filing penalties relate to:

• Individuals who filed online after 31 January after the end of the corresponding tax year and at least 3 months after they were issued with a notice to file

• Individuals who have missed the 31 January deadline and who have not yet filed their SA return for the corresponding tax year

• Individuals who did not need to file an SA return for that tax year but received late filing penalties due to late notification

As with the answer to PQ268996, the figures may include some penalty payments relating to Trust returns as they receive the same penalty code. Penalty payments relating to partnership returns are not included.

Penalties are not used as a means of generating revenue. HMRC want taxpayers to comply with their obligations and to file their returns on time.

HMRC charge penalties to encourage taxpayers to meet their tax obligations and to act as a sanction for those who do not, so the majority who do are not disadvantaged.

Not all taxpayers who fail to submit their return on time will have to pay a penalty. A penalty will not be payable if a taxpayer had a reasonable excuse for not filing their return on time or if they no longer need to file a return.

HMRC will not know if a taxpayer has a reasonable excuse or no longer needs to file a return until they inform HMRC.

Analysis of self-assessment penalty data is complex and HMRC are currently investigating whether it is possible to provide the requested figures. I shall write to the Honourable Member shortly and place a copy of the letter in the Library of both Houses.

HMRC continually uses customer insight to improve filing rates. For example, HMRC has used customer insight to deliver personalised messaging, which research has shown to have a statistically significant effect on filing rates.

HMRC automatically applies a penalty or fine on any self-assessment return that is submitted late. Customers can object or appeal against a penalty levied for late submission. If HMRC accept the explanation for the late return the penalty will be cancelled.

HMRC does not have an estimate of how many customers appealed or objected, or how many penalties or fines were cancelled.