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SA deadline extension: Get the details right

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Are there any down-sides to the effective extension of the filing and payment deadlines for 2020/21 tax returns, and which taxpayers are covered by the penalty waivers?

18th Jan 2022
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HMRC announced on 6 January that late filing penalties would be waived for self-assessment tax returns submitted online by midnight on 28 February 2022.

The late payment penalty of 5% of the outstanding tax will also be waived if that tax is paid in full by 1 April 2022, or the taxpayer has set up a time to pay arrangement by that date (see below). However, interest will be charged at 2.75% on any tax paid late from 1 February 2022.

NIC issues

Late payment of class 2 NIC can mean the taxpayer hasn’t made sufficient contributions to claim the employment and support allowance. This entitlement is determined by the class 2 NIC paid as part of the balancing payment by 31 January. Any affected taxpayers should contact HMRC on 0300 200 3822 for help as soon as possible. 

Some taxpayers may be paying class 2 NIC voluntarily on low profits (below £6475 per year), in order to claim the contributory benefits. These taxpayers need to contact HMRC on 0300 200 3500 for assistance.

Tax credits

Tax credit claimants who have submitted an estimated amount of their earnings for 2020/21 need to finalise those figures by 31 January 2022. There is no extension to this deadline.

However, if the taxpayer is late with their tax credit figures and does provide the final details by 28 February, HMRC will use its discretionary powers to re-make the decision if the delay was due to Covid-19. HMRC will also not be expecting customers to prove the delay to the tax credit finalisation was due to the pandemic.  

Specialist tax returns

HMRC has confirmed to the CIOT that the following tax returns are covered by the late filing and late payment penalty waivers:

  • Partnership returns (form S800)
  • Partners individual returns (form SA 800S)
  • Non-resident company income tax return (form SA700)
  • Trust and estate tax return (form SA900)
  • Trustees of registered pension schemes (form SA970)

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Replies (8)

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By Hugo Fair
18th Jan 2022 16:54

A salutary, and concise, summary of what truly lies behind the "HMRC extends deadlines" type of headline that is being promulgated by the Beeb and others - and absorbed by taxpayers (represented or otherwise).
If only HMRC would see fit to live up to its duty to promote clear understanding of these issues!
In the meantime ... thanks Rebecca.

Thanks (6)
Replying to Hugo Fair:
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By Paul Crowley
20th Jan 2022 09:46

+1
Thanks as always Rebecca

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By MattS
19th Jan 2022 08:30

Thanks for the sumnary.

It is frustrating that when this is reported by the mainstream media the point about the tax liability being due is often missed. This creates the wrong impression amongst taxpayers who put off collating the necessary information for another month.

Thanks (1)
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By Homeworker
19th Jan 2022 10:20

Taking the pressure off the clients is not helping but a perhaps unexpected side effect is that I am also finding it harder to push myself to get them done now!

Thanks (3)
By aiwalters
19th Jan 2022 12:23

It is also worth noting that it can affect an election to carry back Gift Aid donations to the previous year, per 6(b) of 426 ITA 2007.

This won’t just disqualify donations made after 31 Jan being carried back, but a late return may disqualify all donations subsequent to 5 April that are intended to have been carried back, as the election needs to have been made “not later than the normal self-assessment filing date”.

Thanks (2)
Replying to aiwalters:
By Paul D Utherone
19th Jan 2022 22:12

Thanks. I was wondering that for one of mine and had it as an issue in the back of my mind, so your comment saves me having to check!! :)

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By philaccountant
19th Jan 2022 12:50

Makes you wonder what chance MTD has of being a success for self assessment. If people are struggling to get their records together with a deadline nearly 10 months after the year end, how are they going to cope with one month after each quarter ends?

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By Paul Crowley
20th Jan 2022 09:49

No mention of people in the CIS gross status position
HMRC could take account of any lateness at all to take that status away

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