HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for one month giving Self-Assessment taxpayers extra time (if required) to complete their 2020 to 2021 tax return and pay any tax due.
If the return can be filed and paid on time this is recommended. At Moore (South) we are committed to filing all of our clients income tax returns by the 31st January 2022.
The extension comes as HMRC recognises the pressure faced this year by taxpayers and their agents due to Covid-19 affecting the capacity of both. The idea behind the waivers is that it will give taxpayers who need more time to complete and file their return online and pay the tax due without the fear of receiving a penalty. There are still around 5.7 million taxpayers who still need to submit their returns.
The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:
- Taxpayers who cannot file their return by the 31 January 2022 deadline will not receive a late filing penalty if they file online by 28 February 2022
- Taxpayers who cannot pay their Self-Assessment tax by the 31 January 2022 deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay (TTP) arrangement, by 1 April 2022
Interest will still be payable from 1 February.
The 2020/21 tax return covers earnings and payments during the pandemic. If you are unsure what is included in this please use our
blog.
Self-Assessment taxpayers should be aware that 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:
- There will be an extended enquiry window
- 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
- SA800s and SA900s will not be charged 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 however they can appeal against this penalty if they have a reasonable excuse for filing their paper return late.
If you require any assistance with your self-assessment tax return or have queries regarding the above please
contact a Moore (South) adviser.