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.
