HMRC waives late filing penalty but late payment interest will still stand for self-assessment
HMRC has recognised that Self-Assessment taxpayers may need more time to file and pay their 2020-21 tax return due to the continuing pressures of COVID-19 and the Omicron variant.
Late filing and payment penalties will now be waived as long as your return is filed online by Monday 28th February 2022. The 5% late payment penalty will also be waived if your tax liability is paid by 28th February or you make a ’Time to Pay’ arrangement before Friday 1st April 2022. In most cases where the tax debt is lower than £30,000, a ’Time to Pay’ arrangement can be applied for online once the return is filed. Where this is not possible, you will have to contact HMRC direct.
However, it should be made clear, that if you do not pay your 2020-21 liability by 31st January, interest will be charged on any amount overdue from 1st February 2022. HMRC and Folkes Worton are therefore encouraging all self-assessment taxpayers to file and pay by the original deadline if possible to avoid any extra costs.
If you need any help meeting either of the deadlines, please do not hesitate to contact us on 01384 376964
For more information, please visit the HMRC website at https://www.gov.uk/government/news/hmrc-gives-self-assessment-taxpayers-more-time-to-ease-covid-19-pressures