HMRC Press Release 6 January 2022

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.

Useful Link(s)

• Time to Pay Arrangements

Frequently Asked Questions