HM Revenue and Customs are waiving late filing and late payment penalties for Self Assessment taxpayers for one month. This therefore gives individuals giving extra time if needed to complete their 2020 to 2021 tax return and pay any tax due.
HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by the 31st of January 2022, almost 6.5 million have already done so.
HMRC recognises 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 31st of 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 the 31st of January 2022. The penalty waivers will mean that:
- anyone who cannot file their return by the 31st of January deadline will not receive a late filing penalty if they file online by the 28th of February
- anyone who cannot pay their Self Assessment tax by the 31st of 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 the 1st of April
Interest will be payable from the 1st of February, as usual, so it is still better to pay on time if possible.