With Covid continuing to impact individuals and business, the UK Government has announced that it will be extending the deadline for the submission of UK Tax Returns. Peter Webb, our Head of Tax Advisory, explains what’s changing this year.
It’s safe to say that Covid, and particularly the Omicron strain, is continuing to impact many aspects of lives. And tax is not immune. The UK tax authorities, HMRC, have announced that more time will be given to submit Tax Returns this year, acknowledging the additional strain this year for those completing their forms, and the profession too.
As a result, late filing and late payment penalties will be waived for a month for those submitting their 2020/21 Tax Returns to give extra time if needed. Normally an automatic £100 fine is charged if you fail to meet the deadline, and a 5% late penalty payment is due on any unpaid or outstanding tax on 3 March.
It’s important to note that the deadline itself remains 31 January 2022, so if you can still submit your Return in good time, you should do so. In fact, more than half of the 12.2 million Self-Assessment taxpayers who submit a Return have already completed theirs. However, if circumstances mean that this just isn’t possible there is now some breathing space, with no late penalties due as long as you:
- File online by 28 February 2022
- Pay any tax due in full or set up a Time to Pay arrangement by 1 April 2022
Do also bear in mind that any interest will still apply and is payable from 1 February (as normal) so if you can still manage things within the usual time frames it’s better to do so.
Although it’s surprising to see this type of move from HMRC it’s not without precedent; the same announcement was made last year, recognising the need for additional time for taxpayers at that point in the pandemic. It’s also possible that the authorities are helping to ease pressure on their own workforce given the current prevalence of Covid in the UK.
If you need support and guidance with your Tax Return, we can help. For advice with Tax Returns or any aspect of your financial planning, please contact your nearest office.