Tax

HM Revenues and Customs Gives Self Assessment Taxpayers More Time

Taxpayers have been given a breathing space by HMRC who are postponing late filing and late payment penalties.

HMRC recognizes the pressures faced this year by Self Assessment taxpayers and that COVID-19 is still affecting the capacity of taxpayers (especially those who run small businesses) and their agents to meet the 31 January deadline.

HMRC are encouraging taxpayers to file and pay on time but are waiving the penalties for late filing and late payment for one month, giving you extra time to file your 2020/21 tax return and pay any tax due if you need it.

The deadline remains 31 January 2022 and taxpayers are still required to pay their Self  Assessment by this date with interest being charged from 1 February on any outstanding liability.

However, providing tax returns are filed by 28 February 2022 and any payment due is paid in full or a Time to Pay arrangement is set up by 1 April, the late filing and late payment penalties will be waived.

If you are a Self-Employed taxpayer, you will still need to ensure your annual Class 2 National Insurance contributions are paid on time to ensure any claims for certain contributory benefits are unaffected.

Further information can be found at Gov.UK

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