Late filing and late payment penalty waived for one month.

On 6 January, HMRC issued a press release stating that, for the second year in a row, it is waiving the late filing and late payment penalties for those who complete self-assessment tax returns, by one month. This is to give, those who file, extra time to complete their 2020/21 tax return and pay any tax due.

HMRC recognises the pressure faced due to the pandemic for taxpayers and their agents, however, is encouraging taxpayers to file and pay on time if they can. Figures show that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

The deadline to file and pay remains 31 January 2022. However, the penalty waivers 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;
• anyone who cannot pay the tax owed 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.

Interestingly, that Christmas was a popular time to file with over 31,000 filing over the festive period, but New year proved to be even more popular, with 33,467 tax returns filed on New Year’s Eve and 14,231 tax returns filed on New Year’s Day.

The following is a useful summary of the self-assessment timeline:

• 31 January – self-assessment deadline (filing and payment);
• 1 February – interest accrues on any outstanding tax bills;
• 28 February – last date to file any late online tax returns to avoid a late filing penalty;
• 1 April – last date to pay any outstanding tax or make a Time to Pay arrangement, to avoid a late payment penalty;
• 1 April – last date to set up a self-serve Time to Pay arrangement online.