Self-assessment penalties relaxed, but don’t rest too easy, warns LITRG
|The Low Incomes Tax Reform Group (LITRG) welcomes today’s (Thursday) announcement from HMRC that they will not charge late-filing penalties for 2020/21 self-assessment tax returns filed online on or before 28 February 2022. HMRC have also announced that no late payment penalties will be charged for those who pay their 31 January tax bill in full or set up a payment plan by 1 April 2022.1|
|Despite the relaxation, LITRG is urging taxpayers to file online and pay their tax, or agree a time to pay arrangement, by 31 January 2022 if they can.2 This is for two main reasons:
There may be further consequences of missing the 31 January deadline:
Victoria Todd, Head of LITRG, said:
“We are pleased that HMRC are repeating the penalty relaxations which were put in place last year for 2019/20 tax returns because of the pandemic. This gives taxpayers more time if needed to file their 2020/21 tax return and pay their tax without penalties charged.
“But taxpayers need to be aware that this is a concession on penalties and not a change to the deadline – the 31 January deadline remains in place. There could be other consequences for taxpayers of taking advantage of the announcement and putting off dealing with their taxes until February. We recommend that taxpayers make every effort to meet the 31 January statutory deadline if possible. If necessary, taxpayers should consider using provisional or estimated figures.”6