Struggling to complete your Self Assessment tax return ahead of the midnight 31 January online-filing deadline?
HMRC acknowledges that COVID-19 could be a key reason, which is why it has again decided to help sole traders and others by waiving Self Assessment late-filing and late-payment penalties for one month. If you declare income via Self Assessment, effectively, you have up to a one-month filing extension for your 2020/2021 tax return.
Filing your tax return after midnight on 31 January 2022 will mean you’ve filed late – the deadline hasn’t changed, however, you will no longer be subject to a late filing penalty as long as you complete the return before the 28th February 2022.
Late payment interest (2.75%) will still be payable from 1 February – there’s no change to interest rules – so paying any tax you owe by the 31st January 2022, if you can afford it, will work out cheaper.
If you can’t pay your Self Assessment tax bill, you can make your own Time to Pay arrangement via your Government Gateway account, if you:
- have filed your latest tax return
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay your debt off within the next 12 months or less.
You should call the Self Assessment helpline (0300 200 3822 Mon-Fri 8am to 6pm except public holidays) if you cannot make your own Time to Pay Arrangement online, for example, if you owe more than £30,000 or need more time to pay.