HMRC Self Assessment Deadline Extension: Penalties Waived

HMRC have announced on 6th January 2022 they are waiving late filing and late payment penalties for Self-Assessment taxpayers for one month this January 2022 – offering you extra time to complete your 2020 to 2021 tax return and pay any tax due.

Of course, Robinsons along with HMRC suggest you file and pay on time if possible, but if you need it, extra time is available to you without penalty.  Speak to the Team if you need help filing your return, and/or about Time to Pay arrangements.

 

WHY THE HMRC SELF ASSESSMENT DEADLINE EXTENSION?

HMRC have announced they recognise the pressure faced this year by Self Assessment taxpayers due to COVID-19.  The penalty waivers give taxpayers 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

*Important to note: Interest will be payable from 1 February.

 

Self-Assessment timeline:

31st January Self Assessment Deadline (Filing & Payment)
1st February Interest accrues on any outstanding tax bills
28th February Last date to file any late online tax returns to avoid a late filing penalty
1st April Last date to pay any outstanding tax or make a Time to Pay arrangement to avoid a late payment penalty

Last date to setup a self-serve Time to Pay arrangement online

 

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

  • interest will be charged on late payment. The late payment interest rate is 2.75%
  • a return received online in February will be treated as a return received late, with a valid reasonable excuse for the lateness. This means that:
  1. there will be an extended enquiry window
  2. for returns filed after 28 February the other late filing penalties (daily penalties from 3 months, 6 and 12 month penalties) will operate as usual
  3. 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 2022. Further late payment penalties will be charged at the usual 6 and 12 month points (August 2022 and February 2023 respectively) on tax outstanding where a payment plan has not been set up

HMRC will not charge late filing penalties for SA700s and SA970s received in February. These returns can only be filed on paper.

For SA800s and SA900s HMRC will not charge a late filing penalty if taxpayers file online by the end of February. The deadline for filing SA800s and SA900s on paper was 31 October. Taxpayers who file late on paper will be charged a late filing penalty in the normal way. They can appeal against this penalty if they have a reasonable excuse for filing their paper return late.

Robinsons are on hand should you need help with your tax liabilities and cannot pay in full. Speak to the team about setting up a Time to Pay arrangement to spread Self Assessment bills of up to £30,000 over up to 12 monthly instalments.

You can apply for self-serve Time to Pay via GOV.UK. Interest will be applied to any outstanding balance from 1 February 2022.

 

SPEAK TO ROBINSONS

 

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