2020-21 Self Assessment Penalty Waivers

January 7th, 2022 | Posted in Self Assessment

2020-21 Self Assessment HMRC has announced that it is waiving late filing and late payment penalties for 2020-21 self assessment tax returns for one month.  While the filing and payment deadline remains 31 January 2022, the waiver means that no late filing penalties will be incurred for self assessments filed by 28 February 2022.

Late payment penalties will also be waived as long as the tax is settled in full by 1 April 2022 or a ‘Time to Pay’ arrangement is set up by then.  However, interest on late payments will be chargeable as normal from 1 February 2022 and HMRC’s current interest rate is 2.75%.

Once a 2020-21 tax return has been submitted, a longer ‘Time to Pay’ arrangement can be set up for taxpayers that can’t make the payment in full by 1 April 2022.  This can be done online for tax bills of up to £30,000 and those with more than that to pay can call the Self Assessment Payment Helpline on 0300 200 3822.

As HMRC have made it clear that the filing and payment deadline still remains 31 January 2022, we  advise meeting this deadline where possible.

HMRC have finally launched a consultation to address concerns about Repayment Agents who make tax refund claims for clients for a commission fee of 50% of more https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/hmrc-launches-consultation-to-address-concerns-about-repayment-agents-3190413

Freelance tax reforms leave traps for the unwary https://www.ft.com/content/adb1742a-2ad6-461d-bf9f-674b3be37cda #IR35

Good luck to all those about to sit their GCSEs and A levels. My eldest starts her GCSEs today, woke up with that same fluttery feeling of sitting my own GCSEs all those years ago!

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