Update on tax return deadline and payment dates for 2020/21

Today HMRC has announced that it will not charge:

1. Late filing penalties for those who file online by 28‌‌ ‌February 2022.

2. Late payment penalties for those who pay the tax due in full or set up a payment plan by 1‌‌ ‌April 2022.

Time to Pay options are still available once you have filed your 2020-21 tax return, and you can set up an online payment plan to spread Self Assessment bills of up to £30,000, over and up to 12 monthly instalments.

The payment deadline for Self Assessment is 31‌‌ ‌January and interest will be charged from 1‌‌ ‌February on any amounts outstanding. Normally a 5% late payment penalty is charged on any unpaid tax that is still outstanding on 3‌‌ ‌March. This year, like last year, HMRC is giving more time to pay or set up a payment plan, you will not be charged the 5% late payment penalty if you pay your tax or set up a payment plan by midnight on 1‌‌ April.

  • interest will be charged on late payment. The late payment interest rate from 4 ‌‌ ‌January 2022 is 2.75%
  • a return received online in February will be treated as a return received late where there is a valid reasonable excuse for the lateness. This means that:
  • there will be an extended enquiry window
  • for returns filed after 28‌‌ ‌February the other late filing penalties (daily penalties from 3 months, 6 and 12 month penalties) will operate as usual
  • a 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, by midnight on 1‌‌ ‌April 2022. Further late payment penalties will be charged at the usual 6 and 12 month points (August 2022 and February 2023 respectively) on tax outstanding where a payment plan has not been set up.
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