HMRC announces self-assessment tax return penalty waivers
HMRC has announced it is waiving late filing and late payment penalties for self-assessment tax return customers.
The deadline for filing and paying a 2020/21 self-assessment tax return remains 31 January 2022.
However, the penalty waiver will mean that taxpayers can submit their return online by 28 February and not incur a late filing penalty.
Taxpayers who cannot pay their tax bill 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.
The Time to Pay arrangement allows individuals to spread their tax payments over a period of time. Self-assessment taxpayers can apply for the arrangement online once they have filed their return.
Interest on payments
Although no penalties will be due before 28 February, interest will still be payable from 1 February. HMRC urges taxpayers to file and pay their tax bill on time to avoid interest on their payment.
The late payment interest rate will be charged at 2.75%.
Taxpayers are being reminded that grants received during the pandemic, up to 5 April 2021, will need to be declared on the return, as these are taxable.
Effects of coronavirus pandemic
HMRC has recognised the pressures caused by the coronavirus pandemic, noting that taxpayers and agents may not be able to meet their obligations by 31 January.
The penalty waiver will allow more time for taxpayers who need it, to file and pay their self-assessment tax liability, without receiving a penalty, up until 28 February.
Have you submitted your tax return?
According to HMRC, of the 12.2 million self-assessment taxpayers for 2020/21, around 6.5 million have already submitted their tax return.
If you are yet to submit your 2020/21 tax return, contact us today or visit our Tax Returns page for more information.
Call us on 01704 891676
Email us at firstname.lastname@example.org
Send us a message via our contact page