Millions of taxpayers yet to submit self-assessment tax return

Taxpayers are being reminded they have just a week left to submit their 2021/22 self-assessment, otherwise, they could face fines.

The Low Income Tax Reform Group (LITRG) is also warning people that it is not expecting HMRC to allow taxpayers more time to file their tax returns – as was the case for the last two years.

Tom Henderson, LITRG Technical Officer, explained, “Due to the coronavirus pandemic, HMRC allowed people to file their returns up until 28 February without incurring a penalty for the last two years. We do not expect HMRC to do that for 2021/22 returns, so we are reminding people to take action before the 31 January deadline.”

Those who do not meet the 31^st of January deadline will likely face an automatic £100 penalty, and unpaid tax will accrue late payment interest (6% per annum).

Tom added, “There is still time to avoid a fine if you are one of the millions of people who still need to complete and submit a tax return for 2021/22. Do not leave it until the last minute, as you may discover that you do not have all the necessary information, or you may need to get help.

“Filing your tax return sooner rather than later will also mean that you either have more time to prepare for a tax bill, or you may receive a refund quicker.

“Unfortunately, the Self-Assessment system contains a few traps. For example, if you need to file a tax return for 2021/22 but you have not yet registered to do so, then the 31 January payment deadline still applies, and interest will accrue on late payments.

“Conversely, if you registered to file a return but you no longer think you need to do so, late filing penalties will still apply if you do not file a return by the deadline. In either case, it is best to take any necessary action sooner rather than later.”

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