Self-Assessment Deadline Extended
Following what can only be described as a ‘tricky’ couple of years for businesses and the self-employed, HMRC has announced that they are waiving late filing and late payment penalties for self-assessment taxpayers by one month.
How is the deadline changing?
This waiver will essentially push back the deadline for submission from the 31st January 2022, to the 28th February 2022.
When do you need to file and pay by?
While the official deadline is still the 31st of January, fees will not be issued if returns are filed by the 28th of February.
This also means that anyone who cannot pay their tax by the January deadline will not receive a late penalty fee, provided they pay their tax in full or set up a time-to-pay arrangement by the 1st April 2022.
Will you still have to pay interest?
HMRC has stated that interest will still be payable from the 1st of February 2022, as usual.
Why are they extending the deadline?
HMRC stated they recognise the pressure faced by taxpayers and their agents due to the COVID-19 Omicron variant and have halted the penalties to ease worries about fines.
Coming as a relief to many, the extension will give more time for taxpayers to complete and submit their 2020–21 tax returns online and pay any tax that is due, with recent figures showing that 12.2 million taxpayers still needed to submit their returns.
Director of professional standards and policy at The Association of Accounting Technicians (AAT), Adam Harper, said: “Today’s decision will give valuable breathing room to many taxpayers and help them to avoid potentially damaging fines at a critical time – not only for them as individuals but for the UK economy as a whole.”
Accountancy bodies such as AAT had called on HMRC to extend the January deadline, like they did last year, stating that Covid-related staff shortages were making it “impossible for firms to process the documents on behalf of their clients in time”.
It is likely that HMRC was nervous about the amount of returns that would be delayed and consequently appealed due to Covid-related issues, so decided to waive the fees in a pre-emptive measure.
Other bodies, such as the Chartered Institute of Taxation (CIOT), believe this alone is not enough and that HMRC should introduce further support and easements, such as extending time limits for penalty appeals and allowing tax advisers to make ‘bulk’ appeals on behalf of clients.
If you aren’t part of the 6.5 million taxpayers who have already submitted their return, make sure to do so soon. Remember, we’re here to help!
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