2022 Self Assessment – changes to late filing and late payment penalties

2022 Self Assessment deadline of 31 January 2022 is fast approaching. Whilst it is recommended everyone submits their return and pays any tax due by this date, HMRC has made some changes to late filing and late payment penalties up to 28 February 2022.

The late filing and late payment penalties for Self Assessment taxpayers which usually apply are being wavered by HMRC for one month.

For those have not paid any tax that was due on 31 January 2022, interest will still be charged by HMRC at the rate of 2.75%. it is therefore important that everyone that can file and pay their tax on time, does so.

HMRC has recently confirmed that, of the estimated 12.2 million taxpayers who are required to submit a tax return by 31 January 2022, close to 6.5 million have already done so.

The 31 January 2022 deadline remains to pay and file Self Assessment returns. This newly announced waver means that anyone who is not able to meet this deadline will not receive a late filing penalty (if their return is filed online by 28 February 2022. Additionally, anyone who is not able to pay their tax which is due by the 31 January 2022 deadline with not receive a late payment penalty, if their tax is paid in full, or a Time to Pay arrangement is agreed and set up with HMRC by 1 April 2022.

Interest on tax outstanding after 31 January 2022

Interest will remain payable from 1 February 2022, so those that can, should pay on time, to avoid this.

Time to pay

Time to Pay is an existing service in which HMRC allows any individual or business who require it, the option to spread payments over an agreed time period. For Self Assessment taxpayers, with up to £30,000 of tax debt, this can be requested online, but only once a tax return has been filed.

2022 Self Assessment – declaring income on Covid-19 support schemes

The 2020/21 Self Assessment tax return includes earnings and payments received during the pandemic. If any grants or payments from the COVID-19 support schemes were received up to 5 April 2021, these will need to be included on the Self Assessment, as these will be taxable.

Schemes and grants which should be included include the Self-Employment Income Support Scheme (SEISS) and local authority grants.

2022 Self Assessment – How Alexander & Co can assist

We can provide a corporate or personal tax advisor to help guide you through everything you need to know when it comes to navigating tax, which included advice on Self Assessment Tax Returns, which we can calculate and file on your behalf.

Our tax advice team consists of varying personal tax advisors who will work with you to understand your objectives and provide comprehensive tax planning to suit these objectives. Our team has close ties with HMRC, so we are always on top of our game and up to date with the latest developments and legislation.

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