Following on from our Chronicle column dated 7 January 2022, we are sticking with the theme of Self-Assessment (SA), as the Government has revisited last year’s easement.
On 6 January, HM Revenue & Customs (HMRC) announced that late filing penalties and late payment penalties have been waived for a period of one month.
Important to note is that this does not constitute an extension of the deadline. Taxpayers are still expected, if they can, to file their Self-Assessment tax return and pay the tax that they owe by Midnight on 31 January 2022.
Where the pressures brought about by COVID-19 will make it impossible for a taxpayer to meet the SA deadline, the waivers mean that:
- a late filing penalty will not be charged where the SA tax return is submitted to HMRC by 28 February 2022; and,
- where a 5 per cent late payment penalty is normally charged on tax still outstanding at 3 March, this will not be charged where tax is paid in full (or a Time to Pay arrangement set up with HMRC) by 1 April 2022.
Despite these concessions, interest remains payable from 1 February 2022 and so it is worth complying with the January deadline, wherever possible.
Any SA returns filed after 28 February will attract other late filing penalties (six and 12-month interval), as usual.
Filing a return or making payment of outstanding tax after 31 January may also impact collection of Class 2 National Insurance Contributions (NIC).
As agents, we remain committed to submitting our clients Self-Assessment tax returns by the 31 January 2022 and would encourage anybody who has not yet provided us with the information necessary to do so, to contact us at the earliest opportunity.
If you are in need of support with your annual Self-Assessment obligations and looking to engage a team of chartered accountants and business advisers as a result, we can help.
For professional advice on this and other tax and accountancy-related matters, please contact me or a member of our team by visiting www.georgehay.co.uk or calling 01767 315010.
