Penalties and late payment fees are to be waived for a month for any taxpayer who fails to get their tax return in by the usual deadline of the 31st of January.
"But you should still file your tax return on time if you can!"
So, far, nearly 6 and a half million individuals have already filed their 2020/21 tax return though HMRC is expecting another 6 million or so to be filed in January alone. This is a huge amount of work for HMRC staff to deal with, not to mention problems COVID-19 is causing for accountants and other agents having staff absences and work from home orders.
So, although the deadline to file your tax return and pay what you owe remains the 31st of January 2022, you do have another month now without penalties.
The penalty waivers mean that:
anyone who cannot file their return by the 31st of January deadline will not receive a late filing penalty if they file online by the 28th of February
anyone who cannot pay their Self Assessment tax by the 31st of 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 the 1st of April
Interest will be payable from the 1st of February, as usual, so it is still better to pay on time if possible!
With Omicron sweeping the nation, I feel this is a very positive move by HMRC in the face of mounting staff absences, but I must also strongly recommend that if you can file your tax return, and pay what you owe, by the 31st of January 2022, then definitely do so. Please remember interest will be payable from the 1st of February, as usual, so preparing and filing your tax return by 31st January 2022 makes sense.
And don't forget, the Time to Pay scheme allows you to spread your tax payments if you need to.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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