Millions of self-employed people have received welcome news. In a move similar to last year, HMRC is giving the Self-Assessment taxpayer additional time to complete tax returns and pay any tax due. HMRC recognise COVID-19 is putting pressure on self-assessment taxpayers so have acted accordingly. The change is good news for approximately 5.7 million people yet to file their 2020-21 tax returns. It is estimated 6.5 million people have filed their tax returns to date.
What Has Changed?
HMRC recognise the pressures the global pandemic is having on individuals and businesses and has extended the self-assessment deadline by a month. This is to give taxpayers and accountants who might be struggling, more time to complete their returns.
The official deadline for completing a self-assessment is usually January 31st each year. If the deadline is missed there is a late-filing penalty of £100 which is automatically imposed. The new deadline has been set for 28th February 2022. HMRC have said they will waive late-filing penalties up to this date.
The same deadline applies for paying any outstanding tax that is due. Normally a late-payment penalty would be incurred if a deadline is missed. Individuals and businesses have until 28th February to pay any outstanding bills, or to set up a ‘time to pay’ arrangement. A time to pay arrangement allows people to spread their payment by 1st April. HMRC have said interest would be accrued from 1st February as usual so advise to pay any tax bills as soon as possible. The late payment interest rate is 2.75%.
Self-Assessment Taxpayer – Key Dates 2022
- 31st January – Self Assessment Deadline
- 1st February – Interest starts accruing on outstanding tax bills
- 28th February – Deadline to file any late online tax returns to avoid a late filing penalty
- 1st April – Deadline to pay outstanding tax or to agree a Time to Pay agreement. If you miss this deadline you may incur a late payment penalty. It is also the deadline to agree a self-serve Time to Pay online arrangement.
If you would like advice on your tax affairs please contact us. Call us on 0800 471 4546 or you can contact us here.