Self Assessment Penalty Waivers
HMRC have announced that late filing penalties will not be charged on self-assessment tax returns filed before 28 February 2022. Late payment penalties will also not be charged where the tax due has been paid in full or a payment plan agreed by 1 April.
This obviously comes as welcome news as many industries across the country face staff shortages. We would however still encourage taxpayers to file their returns by 31 January 2022, as while penalties will not be charged the filing and payment deadline is still 31 January 2022. This has the following consequences:
- Interest will be charged on any tax paid after 31 January 2022, the current interest rate being 2.75%.
- A return filed after 31 January 2022 will be treated as late where this is no reasonable excuse meaning the enquiry window is extended.
- Benefit entitlements maybe affected for the self employed if the national insurance position is not up to date.
- There is no extension to deadlines for claims and elections which may be made on a tax return which need to be filed by 31 January i.e. holdover relief. Missing the 31 January deadline may mean some reliefs may no longer be claimable’