Late filing and late payment penalties to be waived for one month for Self Assessment taxpayers

Date: 12/01/22

Late filing and late payment penalties to be waived for one month for Self Assessment taxpayers

HM Revenue & Customs (HMRC) have announced they will be waiving late filing and late payment penalties for Self Assessment taxpayers for one month, to give additional time for completion of the 2020-21 tax return. This is to recognise the current disruptions caused by Covid-19.


Filing your return

The deadline to file and pay remains 31 January 2022, however if your tax return is submitted by 28 February 2022 you will not receive the standard £100 late filing penalty.

Although no penalty will be due we would urge you to, where possible, get your returns in as normal. If your return is filed late then it will be still be treated as being received late and the enquiry period into which your return can be investigated will be extended accordingly.

The waiving of the penalties will also apply to SA800 Partnership Tax Returns and SA900 Trust and Estate Tax Returns. No penalty will be charged provided the returns are submitted by 28 February.

Note the deadline for filing paper returns was 31 October 2021 so penalties will still be charged on any paper returns filed after this date.


Paying your tax

In addition to waiving the above penalty, HMRC is also waiving the 5% late payment penalty charged on any unpaid tax still outstanding on 3 March 2022. Taxpayers will not be charged the late payment penalty provided that their tax has been paid or a Time to Pay arrangement set up by midnight on 1 April.

Despite the penalty being waived, it is worth noting that late payment interest will still be charged from 1 February at 2.75% on any outstanding tax due on 31 January 2022.


Time to Pay arrangement

If you are struggling to pay your tax liabilities you can set up a Time to Pay arrangement to spread the cost of your tax bill. Once your 2020-21 tax return has been filed with HMRC you can then set up an arrangement.

For Self Assessment tax bills of £30,000 or less, you can set up a payment plan here on the GOV.UK website.

If you have Self Assessment debts over £30,000, or you need longer than 12 months to pay, you may still be able to set up a Time to Pay arrangement by calling the Self Assessment Payment Helpline on 0300 200 3822.

Interest will be applied to any outstanding balance from 1 February 2022.

James Cornthwaite FCA CTA

Author: James Cornthwaite FCA CTA

A former pupil at St Aidan’s C of E High School, James attended Blackpool Sixth Form College and Lancaster University, graduating in 2004, gaining BSc. first class honours. He joined Moore and Smalley, Preston in 2005 and qualified as a...

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