HMRC Self-Assessment filing deadline extension
Discussion
Just a heads up for any last minute filers. 
https://hmrc.imicampaign.uk/seeemailinfull/EmailSe...
Today HMRC has announced that we will not charge:
1. Late filing penalties for those who file online by 28 February 2022.
2. Late payment penalties for those who pay the tax due in full or set up a payment plan by 1 April 2022.
https://hmrc.imicampaign.uk/seeemailinfull/EmailSe...
Today HMRC has announced that we will not charge:
1. Late filing penalties for those who file online by 28 February 2022.
2. Late payment penalties for those who pay the tax due in full or set up a payment plan by 1 April 2022.
The normal Self Assessment tax return deadline is 31 January and has been since the Self Assessment system was introduced for tax year 1995/96. That has not changed
What they have done is waive the standard £100 late filing penalty for any tax returns filed between 1 February 2022 and 28 February - which is nice
If a taxpayer has a tax amount payable on or by 31 January, if they do not pay by 31 January, they will still be charged interest until the liability is cleared.
Here is the important bit of their press release -
HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.
HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying 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
What they have done is waive the standard £100 late filing penalty for any tax returns filed between 1 February 2022 and 28 February - which is nice
If a taxpayer has a tax amount payable on or by 31 January, if they do not pay by 31 January, they will still be charged interest until the liability is cleared.
Here is the important bit of their press release -
HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.
HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying 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
Eric Mc said:
The normal Self Assessment tax return deadline is 31 January and has been since the Self Assessment system was introduced for tax year 1995/96. That has not changed
What they have done is waive the standard £100 late filing penalty for any tax returns filed between 1 February 2022 and 28 February - which is nice
Perhaps the heading of my post should have been 'deadline effectively extended', which is what it is.What they have done is waive the standard £100 late filing penalty for any tax returns filed between 1 February 2022 and 28 February - which is nice
Yes - I appreciated it too because it was the first I'd heard that they were going to do this - so thanks for the heads up.
However, it is important for taxpayers to know that their 31 January tax payment is still payable by 31 January. Tax payments have not been given any time extension.
However, it is important for taxpayers to know that their 31 January tax payment is still payable by 31 January. Tax payments have not been given any time extension.
Some clarification from an accounting forum (yes - they do exist). I'm still doing my best to get as many returns submitted before 31 January.
FROM ACCOUNTING WEB FORUM -
A "return received late where there is a valid reasonable excuse for lateness" (in normal times) means that, although the deadline has been missed, the reasonable excuse will ensure no penalty being raised for the lateness.
So, they are saying that a "return received online in February" will be treated in the same way as if, in normal times, it had contained a 'reasonable excuse' value ... and therefore will not generate a penalty for late filing.
However, as others have pointed out, it will still actually be a late filing (with other potential consequences downstream) AND if the payment is also late (although paid in Feb) it will attract an interest charge.
FROM ACCOUNTING WEB FORUM -
A "return received late where there is a valid reasonable excuse for lateness" (in normal times) means that, although the deadline has been missed, the reasonable excuse will ensure no penalty being raised for the lateness.
So, they are saying that a "return received online in February" will be treated in the same way as if, in normal times, it had contained a 'reasonable excuse' value ... and therefore will not generate a penalty for late filing.
However, as others have pointed out, it will still actually be a late filing (with other potential consequences downstream) AND if the payment is also late (although paid in Feb) it will attract an interest charge.
Also worth considering that if a taxpayer files late in the future, any previous late filings may be taken into account if the taxpayer is trying for mitigation; so it's not a complete get out of jail card. Also it's important for others such as gross payment status sole traders/partnerships or the application to apply gross payment status.
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