SA deadline extension: Get the details right

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)