For those struggling from the pressures of Covid-19, HMRC has announced that it will be extending the deadline for Self Assessment taxpayers for one month.
During this month, late filing and late payment penalties will be waived, giving you additional time to file and pay your tax, should it be needed. For clarification, this will mean that:
- Those unable to meet the deadline of 31 January 2022, will not receive a late filing penalty providing they file online by 28 February 2022.
- Those unable to pay their Self Assessment tax by the 31 January 2022, will not receive a late payment penalty providing tax is paid in full or a Time to Pay arrangement is put in place by 1st April 2022.
If you are self-employed with Class 2 National Insurance to pay, we recommend you should aim to file your tax return and pay the full balance of tax liability by the 31 January deadline if possible. Doing so, will avoid any potential issues with obtaining credit for a qualifying year of entitlement towards State Benefits which importantly would include State Pension in the future.
What does this mean?
Interest will continue to be payable from 1 February as normal, so where possible we encourage all Self Assessment taxpayers to pay on time. However, if you are struggling with any Covid-19 related pressure, this is a welcome announcement from HMRC.
More information is available on the
gov.uk website.
For further advice on any of the information contained in this email, please contact your
local Moore adviser.