Self-Assessment Tax Return – to submit at the end of January or not? HMRC announces Self-Assessment Penalty Waivers

/ Government, Tax

Author: Johan Da Silva

Tags: Self-Assessment Tax Return

The short answer here is, submit by 31 January 2022 unless there is a really good reason not to.

There are only a few days left to submit your Self-Assessment Tax Return before the new tax year starts. Just in case you have not seen the recent announcement from the HMRC, they will not be charging any late filing penalties for self-assessment returns filed after 31st January if they are filed before 28th February. The reason behind the move was due to Covid delays. This applies to tax returns, including Individual Self-Assessment, Sole Traders and Partnerships.

The filing deadline has not been changed; so, this means that although you will not be charged a penalty if you submit before 28 February, you will still be charged interest on tax due. This is interest at 2.75% which will apply from 31st January. Late filing penalties will apply as normal if the return is filed after 28th February.

HMRC are also giving more time to pay or set up a payment plan. They will not charge the late payment penalty of 5% on 3rd March if the tax due is paid in full or a payment plan is set up by 1 April 2022.

AIMS’ our advice is to stick to January 31 as your deadline unless you have a real emergency or a very good reason why you can’t. For reasons that aren’t very good, you can read our previous article on funny excuses used in previous years.

If you need more help, please speak to your local AIMS Accountant who can guide you on your specific circumstances.