Self Assessment penalty waivers 20/21

January 6th, 2022

HMRC has announced that they 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. 

From HMRC

This will give customers and their representatives additional time if they need it and will operate in the same way as the equivalent waivers last year. However, HMRC is encouraging customers to file and pay on time if they can–almost 6.5 million have already done so. 

Our Time to Pay options are still available to assist customers. Once they have filed their 2020-21 tax return, customers 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 customers more time to pay or set up a payment plan. Self Assessment customers will not be charged the 5% late payment penalty if they pay their tax or set up a payment plan by midnight on 1‌‌April. They can pay their tax bill or set up a monthly payment plan online at GOV.‌‌UK.  

There is no change to the filing or payment deadline and other obligations are not affected. 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.

 ◦ couldn’t pay their balancing payment by 31‌‌ ‌January 2022, and 

◦ have entered into a Time to Pay arrangement to pay off the balancing payment and other self assessment tax liabilities through instalments. 

Affected customers should contact HMRC on 0300‌‌ ‌200‌‌ ‌3822 for help as soon as possible.