Latest News
HMRC Self Assessment Deadline Approaches - 31st January 2022, HMRC Issues Update
Saturday 1st January 2022
Various sources
With the Self Assessment deadline fast approaching, the HMRC postpones penalty date, the Think Smart Accounts team summarise the impact.
The annual deadline for submitting online Self Assessment tax returns is 31 January 2022, however you now have until 28 February 2022 to avoid a incurring a late filing penalty.
The tax return deadline is for the 2020/2021 tax year, which ended on 5 April 2021, however because of the disruption caused by the Covid-19 pandemic, HM Revenue and Customs has announced a penalty waiver for the second year running. If you're one of the millions of UK taxpayers who still need to send your return, you have been given until 28 February 2022 to avoid a £100 fine for filing late.
Small businesses now have an extra month to file their tax returns - extending the deadline to 28 February 2022 for the second year running. Interest will still be charged on any outstanding payments on 1 February 2022.
HMRC have advised that anyone who can file their tax return by January 31 2022 should still do this. But with the HMRC service often under strain during this busy period, it may be mutually beneficial to extend the deadline. The deadline for filing paper returns for the 2020/21 tax year was 31 October 2021, so to avoid a fine now you must file your return online.
The deadline is particularly important for the self-employed, who as well as reporting their income and other earnings, will also need to factor in any coronavirus financial support received, including SEISS (Self-employment Income Support Scheme) grants.
The current penalty for filing a late tax return is £100, if your tax return is up to 3 months late (starting from February 28 2022). Any longer and your bill will increase by £10 per day, up to a maximum of £900, plus you will be charged interest on any late payments.
When in doubt, speak to HMRC
You might be able to avoid late payment penalties by coming to an arrangement with HMRC to spread your payments over a period of time. You'll need a reasonable excuse for not paying your tax on time preventing you from meeting the tax obligation. HMRC may then suggest you pay what you owe in instalments (referred to as a Time to Pay arrangement)
Worried about filling in your Return?
This is where financial management options like accounting software or a professional accounting service, prove particularly valuable and reduce the stress caused by the filing process. The penalty for completing a Self Assessment tax return late can quickly become expensive, so it is a worthwhile investment to make.
You don't have to fill in the tax return yourself, a good way to avoid making mistakes to ensure the return is completed properly by using a third-party agent or a service provided by Think Smart Accounts.
