group of people celebrating

HMRC waives penalties for late returns and payments

What you need to know

Claire Smethurst, Senior Manager, Private Clients
group of people celebrating

HMRC has announced that, to ease the pressures arising from COVID-19, they will be waiving late filing and late payment penalties until 28 February 2022 for self-assessment taxpayers who cannot file or pay their tax return by the 31 January deadline.

We would however urge clients to file and pay on time if they are able to do so, as the deadline to file and pay remains 31 January 2022.

The waiver of the penalties means that:

  • anyone who cannot file their return by 31 January deadline will not receive a late filing penalty if they file online by 28 February
  • anyone who cannot pay their self-assessment tax by 31 January deadline will not receive a late payment penalty if they pay their tax in full, or organise a Time to Pay arrangement with HMRC by 1 April.

Care should be exercised if filing the tax return after 31 January, as:

  • interest is still charged from 1 February
  • returns that are submitted after 31 January will be classed as late, which means that HMRC has an extended period in which to enquire into them.

If you are having problems making the tax payment, HMRC currently has the facility to be able to do a Time to Pay arrangement to pay the tax in instalments for up to £30,000 online if your tax return is submitted.

We urge you, to still submit your return by 31 January deadline if you are able to, only using this penalty waiver if you really must and where there are reasonable grounds for you to be able to say that the return could not be submitted on time.

If you have any queries or would like to discuss your individual circumstances get in touch with your usual Crowe contact.

Contact us

Rebecca Durrant
Rebecca Durrant
National Head of Private Clients, Manchester