HMRC Gives Self-Assessment taxpayers more time to ease COVID-19 pressures

HMRC Gives Self-Assessment taxpayers more time to ease COVID-19 pressures

The UK Government has announced that for the second year consecutively the late penalty charge for Self-Assessment tax claims will be waived for one month. This news will sure to be welcomed by the estimated 5.7 million who have not yet filed their returns for 2020-2021.

The official deadline for completing a return is 31 January, after which a £100 late-filing penalty would be automatically imposed. Under normal circumstances, taxpayers would have to appeal to HMRC on the grounds of a “reasonable excuse” for their delay.

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

However, interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.

The HMRC has said that the move comes as they recognise the pressure faced this year by Self-Assessment taxpayers and their agents, due to ongoing COVID-19 pressures. A record 1.8m people missed the January 31 deadline last year after HMRC had announced it was temporarily waiving the fee, almost double the 2020 total.

How can Animo help?

Our expert consultants are well-prepared to help you prepare for the end of the tax year and have a comprehensive understanding of all restrictions and pressure that may affect those when filing for the end of the tax year. If you have any queries regarding the above mentioned and how this may affect you, get in touch with one of our consultants today by calling +44 (0)207 060 0835, emailing info@animoassociates.com, or by filling in a contact form below and we will be in touch to provide guidance on best practice for you and/or your business.

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