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 is waiving late filing and late payment penalties for Self Assessment taxpayers for one month
https://www.gov.uk/government/news/hmrc-gives-self-assessment-taxpayers-more-time-to-ease-covid-19-pressures

Not a lot of tax news (can only be a good thing?) but here's my summary of the Autumn Budget: https://bit.ly/3ErZKSd

Closing remarks from @RishiSunak mentioned lots of tax CUTS in his Budget. Easy to do given the biggest tax increase in a long time - the Health and Social Care Levy - was announced BEFORE the Budget last month...

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