Keeping in mind the increased pressures on the taxpayers as well as agents due to this new strain Omicron HMRC decided to waive the self assessment tax penalty.
HMRC has estimated that almost half of the self assessment tax payers have submitted their tax returns, however, if you are included in the other The deadline for the the tax year ending 5 April 2021 is 31 Jan 2021, you should have filed your self assessment and should have paid your t
If due to some unforeseen circumstances you are not abhalf who have not submitted your self assessment tax return for the tax year 2020 to 2021 you should do it by the deadline which is 31 Jan 2022, If you think you are not able to file your return and pay the tax due by the deadline provided you have a valid excuse for that as well you don't have to worry about the penalty charges as HMRC is waiving late filing and late payment penalty by extending the deadline by one month.
It should be noted that the deadline for the self assessment tax return is not extended, it is only the penalty which is waived. So the interest will still be charged on any outstanding payments from 1 Feb 2022.
The waiving of the penalty as announced by HMRC means the following:
- There would be no late filing penalty if they file the tax return by 28 Feb 2022 in case they are not able to file by 31 Jan 2022.
- There will be no late payment penalty if they pay in full or set up a time to pay arrangement by 1 April 2022. a 5% late payment penalty will be charged on any outstanding amount if the tax payment is not received or a payment plan has not been set by 1 April 2022.
However, you should not delay your filing and payments unnecessarily if you have all the information needed to file the tax return and and you have enough finances you should go ahead and file your tax return, make the tax payment and get done with it.
Filing your self assessment on time and paying your tax can be beneficial in the following ways:
- You will have one less thing to worry about. You might have other tax deadlines in the following months such as the VAT deadline.
- You will be more aware of your finances once you have filed your self assessment, you will have a fair idea about how much tax you need to pay and you can plan your future finances better.
- Although there is no late filing or late fee penalty, interest will be charged from 1 Feb in case you have not filed your self assessment tax return on time. The late payment interest rate is 2.75% on any outstanding amount.
- Even if you are not filing your self assessment tax return you need to make sure that the class 2 NI contributions are made on time . If class 2 NI contributions are not made on time the contributory benefits will be affected.
If you are looking for a tax agent to fill in your self assessment tax return contact Taxaccolega and our team of accountants in Croydon will help you meet your tax deadlines. Call us at 020 8127 0728
Source:https://www.gov.uk/government/news/hmrc-gives-self-assessment-taxpayers-more-time-to-ease-covid-19-pressures