People yet to file their self-assessment will not receive a penalty for submitting late online tax returns, HM Revenue and Customs (HMRC) has announced.

The revenue body is still encouraging anyone who has not yet filed their tax return to do so by the oroginal deadline of January 31, if possible.

But anyone who cannot file their return by January 31 will not receive a late filing penalty if they file online by February 28.

Taxpayers are still obliged to pay their bill by January 31. Interest will be charged from February 1 on any outstanding liabilities.

HMRC’s chief executive Jim Harra said: “We recognise the immense pressure that many people are facing in these unprecedented times and it has become increasingly clear that some people will not be able to file their return by January 31.

“Not charging late filing penalties for late online tax returns submitted in February will give them the breathing space they need to complete and file their returns, without worrying about receiving a penalty.”

More than 8.9 million customers have already filed their tax return.

Late filing usually attracts an initial £100 penalty, followed by further potential charges, unless the customer has a reasonable excuse for filing late.

Support is also available for customers who may need help with their tax liabilities.

Once they have completed their 2019-20 tax return, customers can set up an online payment plan to spread self-assessment bills of up to £30,000 over up to 12 monthly instalments.

HMRC said customers with bills of more than £30,000, or who need longer than 12 months to pay their bill, can call it to discuss time to pay.

Last week, the Public Accounts Committee (PAC) criticised HMRC’s “out-of-date” tax systems.

The PAC has asked HMRC to explain why it cannot help some freelancers and other groups who have been left out of coronavirus support measures.

Meg Hillier, who chairs the Public Accounts Committee (PAC), said that many workers had been left behind by Government support schemes because HM Revenue and Customs has old tax systems.

She said: “As public spending balloons to unprecedented levels in response to the pandemic, out-of-date tax systems are one of the barriers to getting help to a significant number of struggling taxpayers who should be entitled to support.”

“And the system is going to struggle, and in many cases fail, to capture or deal with those wrongly claiming it.”