Muras Matters: Self-Assessment Filing Penalty Extension and Late Payment Penalties


Tax payers will be aware that the deadline for submitting their Self-Assessment tax return is 31 January 2022 in order to avoid a £100 late filing penalty. However, last week, HM Revenue & Customs (HMRC) announced that tax payers will not receive an automatic late filing penalty providing their tax return is filed by 28 February 2022.

In addition HMRC also announced that whilst the tax payment deadline remains 31 January 2022, taxpayers will not be charged a 5% late payment surcharge provided their tax is either paid in full, or they make a Time to Pay arrangement, by 1 April 2022.


Self-Assessment Filing Penalty Extension

HMRC last week announced that due to the ongoing coronavirus pandemic they have, as last year, relaxed their stance on the issuing of late filing penalties. As such taxpayers will not receive an automatic late filing penalty of £100 providing their tax return is filed by 28th February 2022. Taxpayers are still advised to try and file their return by the 31 January deadline, as technically any return filed after this will be classed as filed late and will have other implications such as extending the enquiry period for example.

Self-Assessment Late Payment Penalties

The payment deadline for Self-Assessment tax liabilities for 2021/22 tax year remains the 31 January 2022 and interest will be charged from 1 February 2022 on any amounts outstanding. The interest rate charged by HMRC has now increased to 2.75%.

However, HMRC are now providing taxpayers with more time to pay or set up a payment plan in order to avoid the 5% late payment surcharge which ordinarily would be applied to any tax outstanding on 3 March 2022. Any tax must be paid in full or a payment plan set up by midnight on 1 April 2022 to avoid the surcharge.

A payment plan can be set up online to spread the cost of a taxpayers Self-Assessment bill using HMRC’s self-serve Time to Pay facility if:

  • they owe £30,000 or less;
  • their tax returns are up to date;
  • they do not have any other payment plans or other outstanding tax with HMRC.

If a taxpayer is not eligible for a payment plan or cannot use the online service then they can call the Self-Assessment payment helpline on 0300 200 3822.

Our advice remains the same however in that we urge taxpayers to file their tax returns as soon as possible in order to avoid any complications with their tax affairs.

If you have any questions regarding the filing of your tax return or paying your tax liability by 31st January 2022, please speak to your usual contact at the firm.

Our Current working arrangement – We remain ‘Open for business’

Our staff are returning to a mix of office based working and working from home. They can still be contacted in the usual way either via email or by calling the office number where reception will divert your call to the appropriate staff member.

To see our other news items please visit our Muras Baker Jones – Blog.