Introduction
- This is our approach to all articles.
- Today HM Revenue and Customs (HMRC) has announced that they will not charge:
- Late filing penalties for those who file online by 28 February 2022.
- Late payment penalties for those who pay the tax due in full or set up a payment plan by 1 April 2022.
Further Details
- HMRC is waiving late filing and late payment penalties for Self-Assessment taxpayers for one month.
- HMRC recognises the pressure faced this year by Self-Assessment taxpayers and their agents.
- COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline.
- The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.
- Giving them extra time to complete their 2020/21 tax return and pay any tax due.
- The deadline to file and pay remains 31 January 2022.
- The penalty waivers will mean that:
- anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February, and
- anyone who cannot pay their Self-Assessment tax 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.
- Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.
What Should I Do Next?
- If you have provided your SATR information to Avar already or if the return has already been filed then no action is required.
- However, the extended deadline should not be a reason to delay providing Avar information since:
- Interest is still being charged from 1 February on the tax liability.
- Our cost of completing work after 21 January increases.
- There may be other implications that cannot be forseen as yet.