January is always one of the busiest months for our tax teams as they help clients with their Self-Assessment tax returns which need to be submitted by 31st of the month.
The good news for this year is that HM Revenue and Customs (HMRC) is waiving late filing and payment penalties for Self-Assessment taxpayers for one month – giving people extra time, if required, to complete their 2020/21 tax return and pay any tax due.
Of course, not everyone chooses to go right up to the deadline when it comes to sorting out their tax obligations. HMRC has said of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
The deadline to file and pay remains 31 January 2022. However, the penalty waivers will mean:
- anyone who cannot file their return by 31 January 2022 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
Simon Hurren, Tax Director at Scrutton Bland commented: “It’s great to see that HMRC recognises the pressure faced this year by many Self-Assessment taxpayers and their agents. The current situation with COVID-19 is affecting the ability of many taxpayers and their agents to meet their obligations in time for the 31 January deadline. HMRC’s penalty waivers will give taxpayers who need it a bit more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.”
Simon continues: “We strongly advise our clients to complete their tax return by 31 January if they can. It’s worth noting that while the extension to the penalty deadline will be good news for some, interest will still be payable from 1 February, so it is still better to pay on time if possible.”
Our tax team of friendly, professional advisers have been helping individuals navigate their way through the tax system for many decades, helping them to avoid any unexpected bills and finding ways in which to mitigate tax exposure. For more information please call 0330 058 6559 or email email@example.com