The usual fine for late returns for self-assessed taxpayers has been lifted for a month to give them more time to complete their 2020/21 tax return.
HM Revenue and Customs (HMRC) encourages taxpayers to report and pay on time if they can, as the ministry reveals that of the 12.2 million taxpayers who are due to submit their tax returns by Jan.31 2022, nearly 6.5 million have already done so. .
HMRC recognizes the pressure experienced this year by self-assessment taxpayers and their agents. COVID-19 is affecting the ability of some officials and taxpayers to meet their obligations on time for the January 31 deadline.
The deadline for depositing and paying remains January 31, 2022. Waivers of penalties will mean that:
Anyone who cannot file their return by the January 31 deadline will not receive a late filing penalty if they file online before February 28, and
Anyone who cannot pay their self-assessment tax by the January 31 deadline will not receive a late penalty if they pay their tax in full or put in place a payment deadline agreement by April 1 .
Interest will be payable from February 1 as usual, so it’s always best to pay on time if possible.
Angela MacDonald, Deputy Managing Director and Second Permanent Secretary of HMRC, said: “We know that people and businesses are under pressure again this year, due to the impacts of COVID-19. give them more time to fulfill their obligations without fear of receiving a penalty. ”
Lucy Frazer, Financial Secretary to the Treasury, said, “We recognize that Omicron puts pressure on people, so we are giving millions of people more room to run their tax affairs.
“The lifting of late payment and late payment penalties will help ease financial burdens and protect livelihoods as we go through the months ahead. ”
The existing Time to Pay service allows any person or business that needs it the ability to spread their tax payments over time. Taxpayers with a tax debt of up to £ 30,000 can do so online once they have filed their return.
The 2020/21 tax return covers income and payments during the pandemic. Taxpayers will be required to report whether they have received grants or payments from COVID-19 support plans until April 5, 2021 on their self-assessment, as they are taxable, including:
• Income assistance scheme for self-employed workers (SEISS)
• Coronavirus Retention Program (CJRS)
• Other COVID-19 grants and support payments such as self-isolation payments, local authority grants, and Eat Out to Help Out program grants
The one-off payment of £ 500 for working households receiving tax credits should not be reported in the self-assessment.
HMRC urges everyone to be vigilant if they are contacted unexpectedly by someone asking for money or personal information. Taxpayers should always enter the full online address www.gov.uk/hmrc for the correct link to complete their online self-assessment declaration securely and free of charge. HMRC sees a large number of fraudsters sending emails, calls or texts to people claiming to be in the department. When in doubt, HMRC advises not to respond directly to anything suspicious, but to contact them immediately and search GOV.UK for “HMRC scams”.