HMRC takes the pressure of self-assessment taxpayers

With many still suffering financially due to the pandemic, self-assessment taxpayers are being given extra time to complete and pay their 2020/21 tax return if needed.

Recognising the pressures faced this last year, HMRC is waiving late filing and late payment penalties for one month, giving those who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

The deadline date remains on the 31^st January 2022, but the penalty waivers will mean that:

• Anyone who cannot file their return by the 31^st January deadline will not receive a late filing penalty if they file online by 28^th February.
• Anyone who cannot pay their self-assessment tax by the 31^st 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^st April.

However, it’s worth noting that interest will be payable from the 1^st of February, so it is still better to pay on time if you can.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said, “We know the pressures individuals and businesses are again facing this year, due to the impacts of COVID-19.

“Our decision to waive penalties for one month for self-assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.”

Lucy Frazer, Financial Secretary to the Treasury, added, “We recognise that Omicron is putting people under pressure, so we are giving millions of people more breathing space to manage their tax affairs.

“Waiving late filing and payment penalties will help ease financial burdens and protect livelihoods as we navigate the months ahead.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.