UK Income tax 2020/21 – HMRC Late filing and payment penalties waived
Similar to last year, whilst there isn’t an extension of the Self Assessment income tax deadline, HMRC announced yesterday that Self Assessment customers will not receive a penalty for filing their 2020-21 tax return late, as long as they file online by 28 February 2022 and will not receive a penalty for late payment if taxes are paid in full or a payment plan set up by 1 April 2022. HMRC are still encouraging customers who have not yet filed to do so by 31 January, if possible and for customers still to pay their Self Assessment tax bill by 31 January as interest (@ 2.75%) will be charged from 1 February on any outstanding liabilities. Also to note that HMRC have their Time to Pay arrangements in place to assist with spreading tax bills.
Please note that as the actual deadline for submitting Self Assessment has not changed from 31 Jan (only late penalties are being waived), all other 31 Jan deadlines remain unchanged.