24 January 2022

Self-Assessment Deadline Extended

Self Assessment Deadline

For the second year in a row, due to Coronavirus, HMRC have announced that the Self-Assessment deadline has been extended to 28 February. Penalties for late payment and filing have been waived, however interest will still accrue from 1 February 2022.

To prevent interest from accruing, we are still urging all clients to submit their information by 31 January 2022. However, if you are currently being affected by Coronavirus, you do have the filing extension until 28 February 2022.

Can I pay my tax late?

If you do not pay your tax by 31 January 2022, you will not be charged the initial 5% late-payment penalty providing you meet the below criteria by 1 April 2022:

·         You pay your Self-Assessment tax bill in full.

·         You set up a Time to Pay payment plan with HMRC

Even though you will not be charged the initial late payment penalty, you will be charged interest from 1 February 2022 at 2.75% on the amount of tax you owe.

Would I be eligible set up a Time to Pay arrangement?

You can set up a time to pay arrangement if the below apply to you:

·         have filed your latest Self-Assessment 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

If the above does not apply to you and you cannot afford to pay your Self-Assessment tax liability by 31 January 2022, please contact the Self-Assessment Payment Helpline. The contact number is 0300 200 3822 and they are open Monday to Friday, 8am to 6pm.

How do I set up a Time to Pay arrangement?

If you meet the required criteria, you can make your own Time to Pay arrangement using your Government Gateway account. You will need the below information to make the arrangement:

·         your Self-Assessment tax reference number (UTR)

·         your bank account details

·         details of any previous payments you’ve missed

HMRC will ask you:

·         how much you can repay each month

·         if you can pay in full

·         if there are other taxes you need to pay

·         how much money you earn

·         what you usually spend (including bills and entertainment) each month

·         what savings or investments you have

If you are a client and you do not have the information you need to be able to set up a Time to Pay arrangement, please get in touch with us and we will be able to provide this for you.

Back to all news