This January there is some relief for tax advisers and their clients from the gnawing anxiety which grows as the 31st approaches.
Photo by Kiy Turk on Unsplash
Although this is the deadline for the submission of personal tax returns, HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for one month. This gives extra time, if needed, to complete a self-assessment tax return for the year ended 5 April 2021 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 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
However, with interest still payable from 1 February, as usual, it is still better to pay on time, if possible. Mark Davies & Associates are tax experts for international clients, particularly those with complex cross border transactions. We can help you meet your HMRC filing obligations in a stress-free manner, negotiate “time to pay” arrangements with HMRC on your behalf and review your tax affairs to achieve tax efficiency savings. However, please be mindful that this is the busiest time of year for tax advisers, and we are obliged to operate on a “first come first served” basis, so prompt attention is recommended.
Please contact Roger Holman for more details.