HMRC waives late filing and payment penalties for one month giving Self-Assessment taxpayers more time
On 6 January HM Revenue and Customs (“HMRC”) announced that they will be waiving late filing and late payment penalties for Self-Assessment taxpayers for one month in respect of the tax year ended 5 April 2021 for those who need it – giving them more time to pay the due tax and easing financial burdens in the coming months.
It should be noted that the deadline for filing tax returns still remains the 31 January 2022, however, should anyone not file their tax return by this date, they will not receive a penalty providing they submit online by 28 February.
It is advisable to pay on time if possible, as late payment interest at the rate of 2.75% will be payable as usual, from 1 February 2022.
This waiver also applies to anyone who cannot pay their self-assessment tax by the 31 January due date, (or those entering into a time to pay arrangement) by 1 April 2022 who will also not be charged any penalties. Late payment interest however will be charged at 5% on payments outstanding by 1 April 2022, and it is also worthwhile noting that the HMRC tax enquiry window can also be extended by up to 3 months should you file your tax return after 31 January 2022.
If you don’t know whether you need to complete a self-assessment, or you are worried about not being able to file and pay your self-assessment tax by 1 April 2022, please contact our self-assessment accountants at Gerald Edelman to further discuss the options that are available to you.