The self assessment deadline is just about upon us on 31st January and yet according to HMRC, more than 4 million are still to file their 2020 to 2021 Self Assessment tax return. Whilst HMRC has provided a one-month penalty waiver for late-filing and late-payment penalties, there are still implications of not meeting the 31st January deadline.
In normal circumstances, if you miss the self assessment deadline and fail to submit your tax return or pay your bill by 31st January you will be subject to a penalty of £100 for submissions up to 3 months late. This penalty will increase if your submission is over 3 months late. You will also be charged interest on late payments.
Due to the impact on businesses of COVID 19, penalties will be waived for one month for submissions for the year 2020 to 2021. Therefore, if you submit your online return by 28th February 2022, you will not receive a penalty.
if you pay your tax in full or enter into a payment plan by 1 April 2022, you will also not get a late penalty.
However, interest will still be charged interest on any monies owed not paid by the 31st January deadline.
The self assessment timeline is as follows:
- 31 January – Self Assessment deadline (filing and payment)
- 1 February – interest accrues on any outstanding tax bills
- 28 February – last date to file any late online tax returns to avoid a late filing penalty
- 1 April – last date to pay any outstanding tax or make a Time to Pay arrangement, to avoid a late payment penalty
- 1 April – last date to set up a self-serve Time to Pay arrangement online
If you wish to estimate any penalties you may be subject to for late payments, HMRC has an online estimator.
Self assessment deadline time is sadly a time when scams arise with requests for money or personal information being received from fraudsters. It is imperative to be on your guard at this time and please read our article on Fake HMRC letters for how to spot these scams and what to do to protect yourself.
The Self assessment deadline can cause stress and be time-consuming for many businesses. This self assessment may be more time consuming and confusing due to having to factor in income such as:
- Self-Employment Income Support Scheme
- Coronavirus Job Retention Scheme
- 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
If you would like to save yourself time and stress in the future, get in contact with us at Maynard Johns for an informal chat about what we can do to help. We have a range of services from fixed-fee packages with or without bookkeeping to setting you up with cloud accountancy software to helpline streamline your accounts. Never miss a self assessment deadline again! Call us on 01237 472071.