HMRC gives Self Assessment taxpayers more time to ease COVID-19 pressures

Need advice? We can help.Get in touch today

Late filing and late payment penalties are to be waived for one month for Self Assessment taxpayers

HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020/21 tax return and pay any tax due.

HMRC is encouraging taxpayers to file and pay on time if they can, since, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

However, HMRC recognises the pressure faced this year by Self Assessment taxpayers and their accountants. COVID-19 is affecting the capacity of some accountants and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

  • anyone who cannot file their return by the 31 January deadline will not receive a £100 late filing penalty if they file online by 28 February
  • anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a 5% late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

Be aware though that late payment interest at 2.75% will still be charged from 1 February, as usual, so it is still better to pay on time if possible.

If you need more time to pay, contact HMRC to discuss a Time to Pay arrangement, which allows any individual or business who needs it the option to spread payments over an agreed period. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.  To set up a Time to Pay arrangement call the Self Assessment Payment Helpline on 0300 200 3822

Useful information for HMRC gives Self Assessment taxpayers more time to ease COVID-19 pressures

IndividualsLimited CompaniesSole Trader or Partnership

The Chancellor of the Exchequer, Rishi Sunak, delivered his Spring Statement on Wednesday 23 March 2022. Here is an outline the key measures affecting

Read more
IndividualsLimited CompaniesSole Trader or Partnership

This month we are asking our tax and accounts managers to share their top tips for saving tax as the 2021/22 tax year draws

Read more
Limited CompaniesSole Trader or Partnership

A company might have a great product or service but without a business growth strategy to help it define, articulate and communicate where it

Read more
IndividualsLimited CompaniesSole Trader or Partnership

Throughout the last two years, many small business owners have faced the economic uncertainties accompanying an international pandemic. However, while many companies are struggling

Read more
wave

I am a...