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For the those of you have not yet completed your Self Assessment return, please bear in mind the new end of February deadline, but also be aware of the payment deadline and time to pay.

HMRC is waiving late filing and late payment penalties for Self Assessment taxpayers for one month with the intention of providing extra time for the completion of 2020 to 2021 tax returns and payment of any tax due.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: ‘We know the pressures individuals and businesses are again facing this year, due to the impacts of COVID-19. Our decision to waive penalties for one month for Self Assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.

While HMRC is still encouraging taxpayers to file and pay on time if they can, they recognise that taxpayers and their agents have faced significant pressure this year due to the ongoing Covid-19 pandemic. The penalty waivers give those taxpayers who need it more time to complete and file their return online and pay the tax due without becoming concerned about receiving a penalty.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

  • anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February.
  • anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

It is important to note that interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.

Lucy Frazer, Financial Secretary to the Treasury, said: ‘We recognise that Omicron is putting people under pressure, so we are giving millions of people more breathing space to manage their tax affairs. Waiving late filing and payment penalties will help ease financial burdens and protect livelihoods as we navigate the months ahead.’

If you’re unsure of what you need to do, please contact a member of the team and we will be happy to help.