Self Assessment Tax Returns 2020-21

Self Assessment Tax Returns 2020-21

Self Assessment Tax Returns 2020-21

Have you already submitted your Self Assessment Tax Returns 2020-21 returns and paid any tax due? If you have, read no further. You can sit back and relax without the worries of doing the tax returns for another year.

If you haven’t submitted your self assessment tax returns 2020-21, you have 2 weeks to either submit yourself or get someone to do it for you.

HMRC announcement on 6th January 2022

While encouraging taxpayers to file and pay on time by the deadline of the 31st of January 2022, HMRC have recently announced a relaxation of the returns deadline and penalties, waiving late filing and late payment penalties for Self Assessment taxpayers for one month till end of February 2022.

HMRC’s penalty waivers will mean that:

  • anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February 2022
  •  anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April 2022

Interest will be payable from 1 February 2022, as usual, so it is still better to pay on time if possible.

Full details about this are published on GOV.UK website.

Submit online and pay on time

HMRC will still charge late payment interest of 2.75% (current rate) from 1 February on any outstanding tax due (after the usual payment deadline of 31 January 2022).

Normally a 5% late payment penalty is charged on any unpaid tax that is still outstanding on 3 March. HMRC is giving taxpayers more time to pay or set up a payment plan. Self Assessment taxpayers will not be charged the 5% late payment penalty if they pay their tax or set up a payment plan by midnight on 1 April.

Tax payers may be able to use HMRC’s Self-Serve Time to Pay service to set up a payment plan of up to 12 months online without speaking to HMRC. You can find out more by searching ‘Difficulties paying HMRC’ on GOV.UK website.

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