It has been announced today that Self Assessment taxpayers who have not filed their 2020-21 tax return by the 31 January 2022 deadline will not receive a late filing penalty if they file their return online by 28 February 2022.
Self Assessment tax returns should still be submitted and paid on time, where possible, as late payment interest will be applied.
Late payment interest
Late payment interest will still be charged from 1 February 2022 on any outstanding liabilities. This means that if tax returns are submitted after the 31 January filing deadline, late payment interest will be automatically applied to the unpaid liability. The late payment interest rate from 4 January 2022 is 2.75%.
Late payment penalties
A 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, by midnight on 1 April 2022. Further late payment penalties will be charged at the usual 6 and 12 month points (August 2022 and February 2023 respectively) on tax outstanding where a payment plan has not been set up.
Time to Pay options
Once the 2020-21 tax return has been filed, Time to Pay options are still available. An online payment plan can be set up to spread Self Assessment bills of up to £30,000 over and up to 12 monthly instalments.
Further information about the Time to Pay arrangement can be found here.
How M+A Partners can help
At M+A Partners, our team will continue to work to the 31 January filing deadline to ensure all our clients have every opportunity to settle their tax liabilities or arrange Time to Pay agreements with HMRC at the right time.
If you have not yet sent us your 2020-21 tax return information, we urge you to send us your information now so that we can help you to meet your filing obligations before HMRC apply penalties.
Should you have any queries on the above or require any help or support then please either get in touch with your usual M+A Partners contact or email enquiries@mapartners.co.uk and we will be happy to help.