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HMRC gives Self Assessment taxpayers more time to ease COVID-19 pressures

7th Jan 2022
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New Year, same problems – isn’t that how the saying goes? Yes, January brings with it the cold weather, a two day hangover, and that ever looming Self Assessment tax deadline. This year, Self Assessment taxpayers and their agents face extra pressure due to the latest variant of COVID-19, Omicron. Recognising this, HMRC has extended the deadline for filing tax returns. Whilst HMRC are still encouraging taxpayers to pay on time if they can, they are now waiving late filing and late payment penalties for Self-Assessment tax payers for one month – giving them extra time (if needed) to complete the 2020/21 tax return and pay any tax due.

End month end stress with BrightPay

This is a great gesture of goodwill on their behalf as they acknowledge the huge pressure faced by taxpayers and their agents in meeting their obligations by 31st of January. The winter period has been tough on everyone and the amount of employee absences has skyrocketed due to isolation and illness and has brought some businesses to their knees. The last thing they need is a looming deadline and the possibility of penalties.

While the deadline remains in place for 31st of January 2022, the waiving of penalties means that anyone who cannot file their return by 31st of January will not receive a late filing penalty if they file online by 20th of February 2022. Also, anyone who cannot pay their Self-Assessment tax by 31st of January will not receive a late payment penalty if they pay their tax in full or set up a Time to Pay arrangement by 1st of April 2022. However it is worth noting that interest of 5% will be payable as usual from the 1st of February so it’s best to get it out of the way as soon as you can.

A Time to Pay arrangement allows individuals or businesses the option to spread their tax payments overtime. If you owe less than £30,000 tax then you can do this usually online once you have filled your return. Just go to GOV.UK and search “HMRC payment plan”.

This year you’ll also have to declare if you received any grants or payments from COVID-19 support schemes up to the 5th of April 2021, as these are taxable. This includes: 

  • Self-Employment Income Support Scheme (SEISS). 
  • Coronavirus Job Retention Scheme (CJRS).
  • Other COVID-19 grants and support payments such as self isolation payments, local authority grants, and those for the Eat Out to Help Out scheme. 

The £500 one-off payment for working households receiving tax credits should not be reported in self-assessment.

All in all, it’s a much better way to start a new year; now the only thing you have to worry about this month is cancelling that gym membership before you actually have to use it – just me? Oh well!

Aoibheann Byrne
 

Written by Aoibheann Byrne | BrightPay Payroll Software

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