Due to the pressure Self-Assessment taxpayers have been under since the start of Covid-19 in March 2020, and the uncertainty caused by the pandemic during the tax year 2020 – 2021, HMRC are temporarily waiving late filing and late payment penalties.
What Does This Mean?
Tax returns were due by 31 January 2022. Usually filing after this deadline leads to financial penalties, however HMRC is giving Self-Assessment taxpayers until 28th February to file their tax returns online, and until 1st April for those paying their tax in full or those who set up a Time to Pay arrangement.
Despite the late filing and late payment penalties being waived, we highly recommend filing your tax return as soon as possible, because interest will still be charged on any unpaid tax from 1 February 2021.
What Happens if I Miss the New Deadline?
In order to avoid penalties, you must submit your tax returns online by 28th February, pay outstanding tax in full by 1St April, or set up a Time to Pay arrangement by 1st April. If you fail to meet these deadlines, a £100 late filing penalty will be charged, as well as a 5% late payment penalty if tax remains outstanding. If you continue to not pay your tax returns, further penalties will be charged.
How Can GMP Help?
Understanding how to file you tax returns can be confusing, and ensuring they are correct is absolutely vital if you want to avoid financial penalties. This can be a time-consuming and nerve-wracking job for business owners. At GMP Accountants, we have years of experience working with industries of all types, and helping business owners file their tax returns correctly and before the deadlines.
We can ensure your tax returns are accurate, and filed before 28th February, allowing you to focus on other areas of your business without the worry of missing the deadline.
We Understand
As a small business ourselves, we understand the impact Covid-19 has had on your business, and how important it is that high interest rates and penalties are avoided. Let us help your business during tough and uncertain times. Get in contact with us today to find out how we can help you with your Self-Assessment tax returns, as well as all financial activities related to your business.