• Today’s draft decisions follow months of discussions and pave the way for continued free flow of data between the EU and the UK
• The UK now urges the EU to fulfil its declared commitment to complete the technical approval process swiftly, so that we have final data adequacy decisions as soon as possible
• This will provide certainty for businesses, enable continued cooperation between the UK and the EU, and will ensure law enforcement authorities can keep our citizens safe

The government welcomes the European Commission’s draft data adequacy decisions, which recognise the UK’s high data protection standards and set out that the UK should be found ‘adequate’.

The UK has a world-class data protection system, currently the same as the European Union’s, so it is logical that the Commission should find the UK ‘adequate’.

The EU already recognises other countries around the world as adequate including Argentina, Canada, Israel, Japan, New Zealand, Switzerland and Uruguay – and the UK freely exchanges data with these countries.

Positive data adequacy decisions under both the EU General Data Protection Regulation (GDPR) and the Law Enforcement Directive (LED) would allow for personal data to continue to flow freely from the European Union (EU) and wider European Economic Area (EEA) to the UK.

Seamless international data flows are essential in a hyper-connected world. They underpin the exchange of information and ideas supporting trade, innovation and investment, assist with law enforcement agencies tackling crime, and support the delivery of critical public services sharing personal data as well as facilitating health and scientific research.

Technical confirmation of the draft adequacy decisions will help make sure UK businesses and organisations in everything from logistics to legal services, healthcare to human resources, can continue to receive personal data from the EU and EEA without additional compliance costs. This ensures they will avoid potential knock-on effects for consumers and boost UK startups and smaller firms which operate in EU markets and sell to EU customers.

The UK formally provided the Commission with comprehensive explanatory material nearly a year ago at the start of the adequacy assessment in March 2020. The UK has already recognised the EU and EEA member states as ‘adequate’, as part of its commitment to establish a smooth transition for the UK’s departure from the bloc and manage data flows on an objective basis.

Since then, UK officials led by the Department for Digital, Culture, Media and Sport (DCMS) have held a series of discussions with their European Commission counterparts to reiterate carefully and fully the UK’s legal and regulatory framework and demonstrate beyond doubt that the UK clearly meets the EU’s data adequacy requirements.

The draft decisions published today by the Commission will now be shared with the European Data Protection Board for a ‘non-binding opinion’, before being presented to EU member states for formal approval.

The UK made its representations to the EU in a timely manner but the Commission did not finalise draft decisions in time to complete the adoption process by the end of the transition period. For this reason, as part of the UK/EU Trade and Cooperation Agreement, a time-limited ‘bridging mechanism’ for personal data flows was agreed. This currently allows personal data to continue to flow as it did before the end of the Brexit transition period for up to six months, while the EU completes the adequacy process.

The UK government now urges the EU to swiftly complete this technical process for adopting and formalising these adequacy decisions as early as possible.

Secretary of State for Digital Oliver Dowden said:

I welcome the publication of these draft decisions which rightly reflect the UK’s commitment to high data protection standards and pave the way for their formal approval.

Although the EU’s progress in this area has been slower than we would have wished, I am glad we have now reached this significant milestone following months of constructive talks in which we have set out our robust data protection framework.

I now urge the EU to fulfil their commitment to complete the technical approval process promptly, so businesses and organisations on both sides can seize the clear benefits.

Julian David CEO of techUK said:

The European Commission’s decisions that the UK’s data protection regime offers an equivalent level of protection to the EU GDPR reflects the UK’s high data protection standards.

Today’s decision is warmly welcomed by the tech sector which has been making clear the importance of a mutual data adequacy agreement since the day after the referendum.

Receiving data adequacy, alongside the EU-UK Trade and Cooperation Agreement, will set a solid foundation for digital trade with the EU, including strong non-discrimination clauses and positive data flows provisions, that will give businesses the confidence to invest.

Notes

• The ‘bridging mechanism’ will remain in place until June 30 or until the adequacy decisions come into effect, whichever is sooner.
• The UK has a long and proud tradition of defending privacy rights. In the 1970s, the UK developed pioneering committees to explore the protection of personal data, and in 1981 the UK was one of the first to sign Council of Europe Convention 108. More recently, the UK played an active role in developing the GDPR and LED. The UK Government will continue to promote high data protection standards.
• Read the European Commission’s press statement here.
• Read the GDPR decision here.
• Read the Law Enforcement Directive decision here.

DCMS press office is on 020 7211 2210.

Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April 2021, HM Revenue and Customs (HMRC) has announced.

The payment deadline for Self Assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 March. But this year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.

Taxpayers can pay their tax bill or set up a monthly payment plan online at GOV.UK. They need to do this by midnight on 1 April to prevent being charged a late payment penalty.

The online Time to Pay facility allows taxpayers to spread the cost of their Self Assessment tax bill into monthly instalments until January 2022.

HMRC recognises the pressure affecting taxpayers due to the pandemic, and encourages anyone worried about paying their tax and unable to set up a payment plan online to contact HMRC for help and support on 0300 200 3822.

More than 97,260 customers have set up a self-serve Time to Pay arrangement online, totalling more than £367 million.

Jim Harra, HMRC’s Chief Executive, said:

Anyone worried about paying their tax can set up a payment plan to spread the cost into monthly instalments. Support is available at GOV.UK to help anyone struggling to meet their obligations.

There are several ways that taxpayers can pay their Self Assessment tax bill in full. They can pay online, via their bank, or by post.

Taxpayers should still pay in full if they can. This is the only way to stop interest accruing.

Self Assessment taxpayers who are required to make Payments on Account, and know their 2020 to 2021 tax bill is going to be lower than in 2019 to 2020 – for example due to loss of earnings because of COVID-19 – can reduce their Payments on Account. Visit GOV.UK to find out more about Payments on Account and how to reduce them.

Self Assessment taxpayers who have yet to file their 2019 to 2020 tax return should file by 28 February to prevent being charged a late filing penalty of £100.

Be aware of copycat HMRC websites and phishing scams. taxpayers should search ‘self assessment’ on GOV.UK to get the correct link for their Self Assessment tax return online securely and free of charge. They also need to be alert if someone calls, emails or texts claiming to be from HMRC, saying that they can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK for information on how to recognise genuine HMRC contact.

Visit GOV.UK to find out more about Self Assessment.

This announcement is in addition to last month’s announcement that HMRC will not charge late filing penalties for returns filed online by 28 February. That announcement related to filing of Self Assessment returns and is unaffected by today’s announcement which relates to paying Self Assessment liabilities.

This is the first time HMRC has delayed the charging of penalties for late payment of Self Assessment liabilities

Self Assessment timeline:

• 31 January – Self Assessment deadline (paying and filing)
• 1 February – interest accrues on any outstanding tax bills
• 28 February – last date to file any late tax returns to avoid a late filing penalty
• 1 April – last date to pay any outstanding tax or make a Time to Pay arrangement, to avoid a late payment penalty
• 1 April – last date to set up a self-serve Time to Pay arrangement online

The Self-serve Time to Pay data referenced is for online payment plans created between 1 October 2020 and 17 February 2021.

Self-serve Time to Pay allows taxpayers to set up a payment plan online to help them manage the cost of their tax bill up to £30,000. Customers will be able to pay their tax bill in monthly instalments, up to January 2022.

If someone’s Self Assessment debts are more than £30,000, or they need longer to pay a debt in full, they cannot set up a Time to Pay arrangement online. But they may still be able to set up a Time to Pay arrangement by calling the Self Assessment Payment Helpline on 0300 200 3822.

There is no change to the payment deadline and other obligations are not affected. This means that:

• the payment deadline remains 31 January and interest will be charged on late payment. The current rate of late payment interest is 2.6%
• a 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, by midnight on 1 April 2021. Further late payment penalties are charged at 6 and 12 months (August 2021 and February 2022 respectively), on tax outstanding where a payment plan has not been set up

Follow the National Cyber Security Centre’s 6 essential steps to keep yourself and your business secure online by visiting CyberAware.gov.uk.