To ease COVID-19 pressures HMRC have announced that they will waive penalties for late filing and payment of 2020-21 Self Assessment returns and tax liabilities as long as returns are filed by 28 February and payments made by 1 April 2022.

  • The filing and payment deadline remains 31 January 2022.
  • Taxpayers should still aim to meet the deadline. 
  • No penalties will be applied if you file on or before 28 February 2022 and pay, or set up a Time to pay agreement, by 1 April 2022.

HMRC say they recognise the pressure faced this year by taxpayers and their agents due to COVID-19 and the omicron variant. For many taxpayers their returns may be more complex this year due to the requirement to declare grants and payments received from the COVID-19 support schemes.

The waiver applies to penalties only and interest will still be charged on late payments from 1 February 2022 at the newly increased rate of 2.75%. Late filing and Late payment penalties will apply as normal from 1 March and 1 April respectively unless the taxpayer has a Reasonable excuse for being late.

Useful guides on this topic

2020/21 Self Assessment Tax Return toolkit
A tax return toolkit for the year ending 5 April 2021. 

COVID-19: Taxation of coronavirus support payments
This guide summarises the tax treatment of grants paid during the coronavirus pandemic.

Time to Pay agreement
This is an 'At a glance' freeview guide to Time to Pay arrangements.

Penalties: Late Filing
Late returns can be subject to a mix of fixed and tax geared penalties. What penalties apply for late filing? Which penalty will apply and when? 

Penalties: Late Payment
What penalties are charged when tax is paid late? 

How to appeal a tax penalty (subscriber version)
What are the steps in making an appeal? What should your appeal cover? What does recent case law say on this topic?

External link

HMRC press release: HMRC gives Self Assessment taxpayers more time to ease COVID-19 pressures 

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