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