HMRC has announced that fines for taxpayers that file their Self-Assessment returns for 2020-21 late will be waived until 28 February 2022. The due date of 31 January 2022 remains and HMRC is still encouraging taxpayers to try and meet this deadline. Taxpayers technically remain obliged to pay their bill by 31 January and interest will be charged from 1 February on any outstanding liabilities.
It has been reported by HMRC that there remain some 4 million taxpayers that have not yet submitted their completed Self-Assessment tax return and paid any tax owed. HMRC is urging taxpayers to try and meet the 31 January deadline to avoid paying interest. The confirmation that no late filing penalty will be issued, giving one month’s grace until 28 February 2022 has been broadly welcomed.
In addition, taxpayers that cannot pay their tax liabilities 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 2022.
There are a number of options for taxpayers to defer payments due on 31 January 2022 and pay by instalments over 12 months. This includes the self-serve Time to Pay facility online for debts up to £30,000 or by arrangements with HMRC.
HMRC’s Director General for Customer Services, said:
‘We know some customers may struggle to meet the Self-assessment deadline on 31 January which is why we have waived penalties for one month, giving them extra time to meet their obligations.
And if anyone is worried about paying their tax bill, they can set up a monthly payment plan online – search ‘pay my Self-Assessment’ on GOV.UK.’
Source:Informanagement