Hopefully, you will have filed your 2020 to 2021 tax return by the normal deadline of 31 January 2022. If you haven’t, read on as the HMRC has announced that they will waive late filing and late payment penalties for one month.
HMRC has acknowledged that many businesses are under a lot of pressure this year because of the COVID-19 pandemic. To relieve this pressure, the penalty waivers give taxpayers an extra month to file their tax returns or to make the tax payment.
What does a penalty waiver mean to a business?
- A business that cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February.
- A business that 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.
This is good news for anyone that is struggling, however, it is important to note that interest will be payable on any tax owed from 1st February 2022, as usual. Therefore, it is better to try and get your tax return and payment made as soon as possible if you can.
There is also a Time to Pay service available to any individual or business who needs the option to spread their tax payments over time. Self-Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return. To find out more click on this link – Pay your self-assessment tax bill.
We know it can be very difficult to get your self-assessment tax return completed on time and accurately so if you do need any help then please do contact us. We are happy to offer advice where we can and support you to get your tax return in by this extended deadline if needed.
Going forward you may want to consider using online software such as QuickBooks, Xero, or Sage to track your income and expenditures. By doing this the self-assessment process is easier and it can save time at the end of the financial year. If you would like any advice about the best online software for your business, we can help you.
Any queries regarding your self-assessment tax return please contact us by calling 01623 490 120 or email