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

 

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

Today HM Revenue and Customs (HMRC) have announced that late filing and late payment penalties are to be waived for one month for Self Assessment taxpayers. Like last year, this is not an extension to the January deadline but a relaxation of penalties for those unable to file by the usual deadline - so long as they file by 28 February 2022. Tax remains due by 31 January 2022, and interest will be charged from 1 February 2022, so taxpayers are still encouraged to file by 31 January 2022 if they can.

In a press release, HMRC stated that they recognise the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents 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 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 late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.

Find out more about Self Assessment ↗

The existing Time to Pay service allows any individual or business who needs it the option to spread their tax payments over time ↗. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.    

The 2020 to 2021 tax return covers earnings and payments during the pandemic. Taxpayers will need to declare if they received any grants or payments from the COVID-19 support schemes ↗ up to 5 April 2021 on their Self Assessment, as these are taxable, including:

  • Self-Employment Income Support Scheme

  • Coronavirus Job Retention Scheme

  • other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme

The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.

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